O'BYRNE TILING LIMITED

Risk Rating: LOW
Justification: The company holds a strong net cash position, positive and steadily growing net assets, and all statutory filings are currently up to date. Cash at bank of approximately £1.29m covers current liabilities of £327k nearly four times over, and shareholders’ funds have increased consistently over the reported period. The principal limitation is the absence of an income statement in the filleted accounts, which restricts assessment of trading performance but does not, on the available evidence, indicate financial distress.

Key Concerns
- Limited profitability visibility: The accounts are filed under the small companies regime and the income statement has not been delivered. Turnover, gross margin and operating profit cannot be assessed from the available filings, so it is not possible to verify whether cash accumulation is driven by trading activity or other sources.
- Ownership and governance concentration: A single person with significant control holds between 50% and 75% of the shares, and director and secretary roles are held by members of the same family. This creates key-person dependency and concentrated decision-making.
- Debtor exposure and credit risk: Debtors of £222,694 represent a material portion of current assets. The accounts state that debtors are considered fully recoverable, but no aged debtor analysis or customer concentration detail is provided to independently assess credit quality.

Positive Indicators
- Strong liquidity: Cash at bank of £1,285,208 provides substantial coverage of current liabilities of £326,668, and the company appears to operate with a net cash position after creditors.
- Solvency and equity growth: Net assets of £1,205,601 and shareholders’ funds of the same amount have grown from £171,459 in 2016 to over £1.2m in 2025, indicating sustained accumulation of retained earnings.
- Compliance record: The accounts and confirmation statement are not overdue, and the company has remained active since incorporation in 2004.
- Going concern basis: The directors have adopted the going concern basis, stating an expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Due Diligence Notes
- Request the full income statement and directors’ report to evaluate revenue trends, profitability and operating cash flow.
- Obtain an aged debtor schedule and details of major customers to assess debtor quality and customer concentration.
- Review hire purchase and lease obligations, including the £88,120 of creditors falling due after more than one year and the related repayment profile.
- Confirm current board composition following the resignation entry recorded for a director dated 10 August 2026, and verify against the most recent confirmation statement.
- Clarify dividend policy and distribution history given retained earnings of approximately £1.2m against a nominal share capital of £100.