B2 CONSTRUCTION PROJECT MANAGEMENT LTD

Executive Summary

B2 CONSTRUCTION PROJECT MANAGEMENT LTD shows strong signs of financial recovery and growth with improved liquidity and net assets. While the company enjoys healthy cash reserves and positive working capital, careful management of short-term liabilities, especially tax obligations, is crucial to sustain this positive trend. Overall, the business is financially stable with promising prospects if current strengths are maintained and operational risks mitigated.

B2 CONSTRUCTION PROJECT MANAGEMENT LTD - Analysis Report

Company Number: 12811364

Analysis Date: 2025-07-20 11:53 UTC

Financial Health Assessment of B2 CONSTRUCTION PROJECT MANAGEMENT LTD as at 31 December 2024

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1. Financial Health Score: B

Explanation:
The company demonstrates solid improvement in key financial metrics over recent years, particularly in liquidity and net assets, indicating recovery and strengthening financial health. However, some symptoms such as relatively high short-term liabilities (especially taxation/social security) and modest scale of operations suggest cautious optimism rather than full financial robustness. The 'B' grade reflects a generally healthy but still developing financial condition that requires ongoing monitoring and management.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£33,382	Adequate level of short-term assets including cash and debtors to cover immediate obligations.
Cash at Bank and in Hand	£29,782	Healthy cash position, more than doubling compared to prior year, indicating strong liquidity.
Current Liabilities	£20,464	Significant short-term obligations, mainly taxation and social security, which need careful cash flow management.
Net Current Assets (Working Capital)	£12,918	Positive and improved working capital signals good short-term financial health and ability to pay debts.
Net Assets (Shareholders’ Funds)	£28,253	Strong growth from £4,347 in 2023 to £28,253 in 2024, indicating retained earnings and asset accumulation.
Tangible Fixed Assets	£16,000	Increased investment in fixed assets, suggesting business expansion or capital expenditure.
Share Capital	£100	Minimal share capital reflecting small private limited company status.
Average Number of Employees	1	Very small scale of operations, typical for a micro or small business.

Interpretation in Layman's Terms:
The company's "vital signs" resemble a patient who was previously under strain but has recently gained strength. The cash flow looks "healthy," and the company holds more assets than debts. However, the sizeable short-term liabilities, mainly tax-related, act like a "symptom" that requires vigilant management to avoid cash flow stress.

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3. Diagnosis

• Liquidity and Working Capital: The company’s liquidity has improved significantly, with cash reserves nearly tripling from the previous year and net current assets turning strongly positive. This is a key indicator of good short-term financial health, suggesting the business can comfortably meet its immediate obligations.

• Capital Structure and Net Worth: The net assets have increased substantially, indicating the company has accumulated profits and/or reinvested earnings effectively. This is analogous to a patient recovering strength and building reserves.

• Operational Scale: With only one employee and minimal share capital, the business is small-scale and likely founder-driven, which implies reliance on key personnel and potential vulnerability to operational risks.

• Debt Profile: The large amount of current liabilities, almost entirely taxation and social security costs, poses a risk signal. This "symptom of distress" requires careful cash flow planning to avoid liquidity issues if payments are not timed well.

• Asset Investment: The increase in tangible fixed assets suggests expansion or upgrading of operational capability, a positive sign of business development.

Overall, the financial "vital signs" indicate the company is in a stable and improving condition, but with some caution warranted around managing short-term liabilities and sustaining growth.

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4. Recommendations

• Cash Flow Management: Maintain rigorous cash flow forecasting and ensure timely settlement of tax and social security liabilities to prevent liquidity crunches. Consider setting aside reserves specifically for these payments.

• Debt Monitoring: Explore if any current liabilities can be restructured or spread over time to ease working capital pressure. Avoid accumulation of overdue payables.

• Profit Retention and Growth: Continue to build retained earnings to strengthen equity base further and support business expansion.

• Operational Scaling: Consider strategic hiring or outsourcing to diversify operational risk beyond the single employee, to improve resilience.

• Asset Utilization: Monitor the return on investment from fixed asset purchases to ensure they contribute positively to profitability.

• Financial Reporting and Planning: Regularly update management accounts and undertake periodic financial health checks to detect early symptoms of financial stress.

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Executive Summary