B2 PROJECTS LTD.

Executive Summary

B2 Projects Ltd. is a financially sound and growing small construction specialist with strong liquidity and improving equity. Its stable management and good working capital position support an ability to meet credit obligations. Continued monitoring of receivables and lease commitments is advised to maintain credit quality.

B2 PROJECTS LTD. - Analysis Report

Company Number: SC685758

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: APPROVE
   B2 Projects Ltd. demonstrates strong financial fundamentals for credit extension. The company is active, compliant with filing deadlines, and operates in a specialized construction sector with growing asset and equity bases. Directors have stable control and no adverse records, indicating sound governance. The company’s net assets and working capital have consistently improved year on year, supporting its ability to service debt obligations. Finance leases are moderate and well-covered by current assets and cash reserves.

2. Financial Strength:
   The balance sheet shows a healthy and improving position. Fixed assets increased modestly to £132,839, and net assets rose significantly to £683,808 in 2025 from £550,537 in 2024, reflecting retained earnings growth. Shareholders' funds closely mirror net assets, indicating no unusual debt or off-balance-sheet liabilities. The company is small but growing steadily, well within the Small Company thresholds, which supports manageable regulatory requirements while maintaining robust equity.

3. Cash Flow Assessment:
   Current assets stand at £855,588, comfortably covering current liabilities of £237,113, yielding a strong net current asset position of £618,475, indicating very good short-term liquidity. Cash balances increased to £303,379, providing a solid cash buffer. Debtors are high (£505,209) but appear well-managed relative to turnover (not disclosed but inferred from work-in-progress and trade debtors). Obligations under finance leases total £50,631, which are manageable given current assets and cash flow.

4. Monitoring Points:

• Monitor debtor collection cycles and ageing to ensure continued cash flow stability.
• Watch finance lease obligations and their amortization schedules to avoid liquidity strain.
• Track contract work-in-progress and turnover recognition closely due to the nature of construction activity and revenue recognition policies.
• Keep an eye on any changes in director control or governance that might affect risk profile.
• Review future profitability and cash flow forecasts to anticipate any working capital fluctuations.