Checking out a company using CRO documents

Dilisk

I'm considering replacing the windows of my house. I have a shortlist of
companies to do this.

The list currently contains one member. I would like to know as much about
them as possible -- in particular, whether they are financially succesful.

www.cro.ie can provide some documents about them -- at a price. But before
I pay for a document, I want to know it will be useful.

The documents they have filed in recent years are "Account details" and "B1
ANNUAL RETURN". Would any of these would be useful to me, bearing in mind
that I have no training in, or experience of, accountancy?

adrianw

Dilisk wrote: »

I'm considering replacing the windows of my house. I have a shortlist of
companies to do this.

The list currently contains one member. I would like to know as much about
them as possible -- in particular, whether they are financially succesful.

www.cro.ie can provide some documents about them -- at a price. But before
I pay for a document, I want to know it will be useful.

The documents they have filed in recent years are "Account details" and "B1
ANNUAL RETURN". Would any of these would be useful to me, bearing in mind
that I have no training in, or experience of, accountancy?

No, they're pretty much useless as they will only provide a balance sheet (list of assets and liabities for last financial period and previous one).
There will be an accumulated profit figure, but without further info accounting profit means very little.

ACA2015

It likely will just be abridged accounts as they will likely be a small company. It's will give you an abridged balance sheet, so no profit and loss account. Still though, decent information, it will give you their assets and liabilities and retained profits. Look for firstly;

- their net assets. Negative is bad news
- their cash position, the most important really
- check that their assets aren't inflated by stuff like fixed assets, which are rarely valued correctly
- check retained profits, negative is bad news on recent performance

Check also whether they were audited, as they have been exempt. If audited, greater assurance over the figures.

Remember also that the figures are historic, so the situation may have changed, but given the improvement in the economy overall the risk that things have gone potty is reduced.

To be honest, you are nearly as well off to go with a company who someone recommends to you as the first port of call, as well as the finances stuff.

ACA2015

adrianw wrote: »

No, they're pretty much useless as they will only provide a balance sheet (list of assets and liabities for last financial period and previous one).
There will be an accumulated profit figure, but without further info accounting profit means very little.

Not true, it shows you their liquidity and will tell you if they're near death's door. But they are historic, so if they're really screwed, they'd likely be bust before the reporting date. That's your primary worry.

adrianw

ACA2015 wrote: »

Not true, it shows you their liquidity and will tell you if they're near death's door. But they are historic, so if they're really screwed, they'd likely be bust before the reporting date. That's your primary worry.

Published financial statements reflect an accurate position of the company's liquidity?

I think Anglo Irish Bank's former shareholders would disagree with you on that.

ACA2015

adrianw wrote: »

Published financial statements reflect an accurate position of the company's liquidity?

I think Anglo Irish Bank's former shareholders would disagree with you on that.

:rolleyes:

We aren't talking about companies with complex financial instruments on the balance sheet. It's a simple enough business (one would presume) of tangible assets (being vans ect), some inventory, some cash, some trade receivables and some trade payables/accruals/borrowings. If this person looks up a company and sees them heavily leveraged or with a tiny cash pile they may not be so eager to go with them.