CORINTHIA LIMITED
Company number 09077231 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Investment Risk Analysis: CORINTHIA LIMITED
1. Risk Rating: MEDIUM
The company demonstrates strong net asset growth and low leverage over a 10-year trading history, suggesting operational stability. However, the micro-entity filing status severely limits financial transparency for a company with £1.97M in total assets, and the concentration of control in a single director-owner introduces key person dependency risk. The construction sector context adds cyclical vulnerability.
2. Key Concerns
1. Disclosure Limitations vs. Asset Scale The company files as a micro-entity, meaning no profit and loss account, no cash flow statement, and minimal balance sheet detail are publicly available. With total assets of £1.97M and net assets of £1.68M, this is a materially significant balance sheet being reported with the lowest tier of disclosure. An investor cannot assess revenue, margins, profitability trends, or the composition of current assets (debtors vs. cash vs. stock) from filed records.
2. Single-Director Governance and Ownership Concentration name shown to subscribers serves as sole director and owns more than 75% of shares, with full voting rights and director appointment authority. This creates significant key person risk — there is no board redundancy, no independent oversight, and no separation of ownership from management. Any personal or professional incapacitation of the director could create immediate operational disruption.
3. Sector-Specific Vulnerability The company operates in specialised construction (SIC 43999), an industry characterised by payment cycle delays, retentions, contract concentration risk, and sensitivity to economic cycles. The shift in the latest year — with current assets declining from £1.37M to £1.14M while fixed assets increased from £561k to £828k — may indicate capital being tied up in equipment or property rather than liquid resources, which could strain working capital in a construction downturn.
3. Positive Indicators
- Consistent Net Asset Growth: Net assets have grown from £289k (2016) to £1.68M (2025) — approximately a 5.8x increase over nine years, indicating sustained value creation rather than speculative growth.
- Low Leverage: Total liabilities of £281k represent only ~14% of total assets. Long-term creditors are minimal at £8k. The company is not over-reliant on debt financing.
- Strong Working Capital Position: Net current assets of £861k provide a substantial buffer against short-term obligations.
- Regulatory Compliance: All filings are current. Accounts (made up to 30 June 2025) and confirmation statement are not overdue. The company has maintained a 10+ year active trading record.
- Stable Headcount: Four employees consistently reported across years, suggesting a stable operational base rather than erratic expansion or contraction.
4. Due Diligence Notes
| Item | Rationale |
|---|---|
| Full accounts and P&L | Request full (non-micro) accounts directly from the company. Without revenue, gross margin, and net profit data, profitability cannot be assessed. The balance sheet growth could be driven by asset revaluation rather than trading profits. |
| Composition of current assets | The £1.14M in current assets needs breakdown — what proportion is cash vs. trade debtors vs. work-in-progress? Construction debtors can become impaired quickly. |
| Fixed asset composition | The £267k year-on-year increase in fixed assets (£561k → £828k) should be investigated. Is this equipment, property, or investments? Understanding this shift is critical to assessing liquidity trajectory. |
| Turnover verification | Confirm whether turnover genuinely falls below the £632k micro-entity threshold. With £1.97M in assets and 4 employees, revenue levels would help contextualise asset intensity and return on capital. |
| Director track record | Conduct background checks on name shown to subscribers, including any previous directorships, disqualification records, and insolvency history associated with other entities. |
| Customer concentration | For a micro-entity construction firm, revenue is likely concentrated among a small number of clients. Loss of a single contract could be material. |
| Related-party transactions | Micro-entity accounts are not required to disclose related-party transactions. Given sole ownership, investigate whether assets or liabilities include transactions with the director or connected parties. |