BETTER BUILD SOUTHERN LIMITED

Executive Summary

Better Build Southern Limited shows a high risk profile due to its significant negative net assets and large working capital deficit. Despite compliance with filing requirements and stable directorship, the sharp increase in liabilities and erosion of shareholder funds raise concerns about solvency and liquidity. Further due diligence is required on cash flow, creditor details, and management’s going concern assumptions to fully assess the company’s financial stability.

BETTER BUILD SOUTHERN LIMITED - Analysis Report

Company Number: 12618643

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net assets and net current liabilities, indicating inability to meet short-term obligations from available current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets have deteriorated markedly from a modest positive (£30) in 2023 to a substantial deficit (£-6,744) in 2024, signaling accumulated losses eroding equity.
• Severe Working Capital Deficit: A large net current liability position (£-7,554) indicates insufficient current assets (debtors £375) to cover short-term liabilities (£7,929), raising immediate liquidity risks.
• Sharp Increase in Creditors: Current liabilities have increased more than fourfold in one year (from £1,927 to £7,929), mainly driven by trade creditors and other creditors, suggesting potential cash flow strain or delayed payments to suppliers.

3. Positive Indicators:

• Timely Compliance: The company is up to date with its statutory filings (accounts and confirmation statement), indicating adherence to regulatory requirements.
• Stable Director Presence: The company has named directors with no indications of disqualifications or governance issues from the available data.
• Small Company Filing Exemptions: Utilisation of small company exemptions reduces compliance costs and reporting burden.

4. Due Diligence Notes:

• Investigate Reason for Liability Increase: Clarify what comprises the large rise in creditors and whether these are trade payables, loans, or accrued expenses.
• Review Cash Flow and Profit & Loss: Obtain the income statement and cash flow statement (not filed as exempt) to assess operating performance and cash generation capability.
• Assess Provisions and Deferred Tax: Understand the nature of provisions (currently £190) and deferred tax liabilities impacting net assets.
• Examine Going Concern Assumptions: Given the net liabilities position, confirm management’s plans or external support to sustain operations.
• Check for Related Party Transactions: Though loans to directors are currently nil, historical balances and terms should be reviewed for potential financial support or conflicts.

Executive Summary:
Better Build Southern Limited is currently facing significant financial distress, with a marked deterioration in net assets and a substantial working capital deficit. While the company remains compliant with filing obligations and governance appears stable, the material increase in liabilities and negative equity position present high solvency and liquidity risks. Further analysis of cash flows, creditor composition, and management’s recovery plans is essential to evaluate the company’s operational sustainability.