BALLANTINE BUILDING SOLUTIONS LTD

Executive Summary

Ballantine Building Solutions Ltd demonstrates significant financial distress as evidenced by a sharp decline into net liabilities and negative working capital at the latest year end. While compliance with filing obligations and ongoing operations are positive, the liquidity and solvency risks present material concerns for investors. Further investigation into the 2024 financial deterioration and cash flow position is recommended to clarify the company’s viability.

BALLANTINE BUILDING SOLUTIONS LTD - Analysis Report

Company Number: NI668503

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £224,991 as of the latest financial year end (31 March 2024), a substantial decline from net assets of £44,926 the prior year. The net current liabilities position of £228,359 indicates liquidity stress. These factors together signal high financial risk and potential inability to meet obligations without external support.

2. Key Concerns:

• Deteriorating Solvency: The company moved from positive net assets in 2023 to significant net liabilities in 2024, a material deterioration suggesting losses or write-downs impacting shareholder funds.
• Negative Working Capital: Current liabilities more than double current assets, indicating liquidity issues that could impair day-to-day operations and supplier payments.
• Small Scale and Limited Capital: The company is a micro-entity with minimal share capital (£99) and only 2 employees, potentially limiting operational flexibility and ability to absorb financial shocks.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements were noted, showing regulatory compliance and governance discipline.
• Ongoing Operations: Company status is active, and website information indicates an operational business presence in the construction sector.
• Stable Employee Base: Consistent headcount of 2 employees over recent years suggests operational continuity despite financial challenges.

4. Due Diligence Notes:

• Investigate the cause of the large increase in current liabilities and corresponding asset write-downs or losses during the 2024 financial year.
• Review cash flow statements and creditor aging to assess liquidity management and risk of insolvency.
• Confirm absence of director disqualifications or legal proceedings that may affect governance or operational stability.
• Assess customer and supplier concentration risks given the small scale and industry sector.