ABS BUILD & DESIGN LTD

Executive Summary

ABS BUILD & DESIGN LTD is a small, active roofing and building finishing company exhibiting adequate short-term solvency but showing signs of liquidity reduction and capital erosion in the latest financial year. Compliance with filing obligations and positive net assets are strengths; however, limited operational scale and declining cash balances warrant focused due diligence on cash flow and profitability to evaluate ongoing financial stability.

ABS BUILD & DESIGN LTD - Analysis Report

Company Number: 14174261

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: MEDIUM
   While ABS BUILD & DESIGN LTD maintains positive net current assets and is current with filings, the company exhibits a significant decline in cash reserves and shareholders’ funds over the last year, indicating potential emerging liquidity pressures. Its very small size and minimal staffing further increase operational risk.

2. Key Concerns:

• Liquidity Decline: Cash on hand dropped sharply from £3,168 to £839 in the latest year, despite current liabilities also falling, raising questions about cash flow sufficiency.
• Profitability and Scale: Absence of turnover data and a reduction in net assets from £2,148 to £752 suggest limited profitability or capital erosion, which is concerning for sustainability.
• Limited Operational Resources: With only one employee reported and a recent director change, operational continuity and management capacity may be constrained.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Positive Net Current Assets: Despite the decrease, net current assets remain positive, indicating the company can cover short-term obligations as of the last reporting date.
• No Indications of Insolvency: There are no signs of liquidation, administration, or director disqualifications, and the company remains active.

4. Due Diligence Notes:

• Investigate reasons behind the significant drop in cash and shareholders’ funds in the latest year to understand cash burn or capital withdrawals.
• Review management accounts or turnover data to assess ongoing revenue trends and profitability, which are not disclosed in the abridged accounts.
• Clarify the impact of director change in December 2023 on company strategy and operations, including any related-party transactions or changes in control.
• Confirm the company’s ability to sustain operations with minimal staffing and assess plans for scalability or business development.