BBCLTD DESIGN & BUILD LIMITED

Executive Summary

BBCLTD DESIGN & BUILD LIMITED is a newly incorporated micro-entity in the domestic construction sector with a weak initial financial position characterized by negative net assets and limited liquidity. Its balance sheet shows liabilities exceeding assets, reflecting undercapitalization and limited working capital. Given the early stage and financial fragility, credit facilities are not recommended without significant improvement in financial strength and cash flow generation.

BBCLTD DESIGN & BUILD LIMITED - Analysis Report

Company Number: 15445169

Analysis Date: 2025-07-29 20:52 UTC

1. Credit Opinion: DECLINE
   BBCLTD DESIGN & BUILD LIMITED shows a weak financial position as of its first accounting year ending January 2025. The company reports negative net current assets and total net liabilities of £4,650, indicating an immediate insolvency risk. With total current liabilities exceeding current assets and significant creditors due after one year, the ability to meet debt obligations from operating cash flow is doubtful. The company is very new (incorporated January 2024) with no fixed assets and minimal working capital, reflecting a start-up stage with no proven financial stability or profitability. Given this financial profile and absence of trading history, credit approval for additional facilities is not advisable at this stage.

2. Financial Strength:
   The balance sheet shows no fixed assets and minimal current assets (£599). Current liabilities are recorded at £968, with additional long-term creditors of £4,281, resulting in negative net current assets (-£369) and net liabilities (-£4,650). Shareholders’ funds are similarly negative, indicating that the company is undercapitalized and carries liabilities exceeding its assets. The micro-entity classification and small employee base (2 employees) underscore the limited scale and resources. The financial structure is fragile with no reserves to absorb shocks or fund growth.

3. Cash Flow Assessment:
   The cash and working capital position is weak, with current liabilities outstripping current assets. The absence of fixed assets further implies limited collateral for secured lending. Liquidity is constrained, and there is no evidence of positive cash flow generation or retained earnings to support debt servicing. The company's start-up status suggests initial funding likely came from shareholder equity or short-term creditors but the current liabilities suggest possible reliance on trade credit or loans that may be difficult to sustain. Monitoring cash burn rate and cash flow forecasts would be critical.

4. Monitoring Points:

• Improvement in net current assets and reduction of creditors (especially amounts falling due after one year).
• Generation of positive retained earnings and building of shareholders’ funds.
• Timely filing of subsequent accounts and confirmation statements to track financial development.
• Any capital injections or loans from directors or third parties.
• Progress in business operations and contracts secured in the domestic construction sector.
• Management’s ability to control costs and enhance liquidity.