BLAKE BUILDING & CO LIMITED

Executive Summary

BLAKE BUILDING & CO LIMITED is a very young construction micro-business with a fragile but positive financial position. The company currently exhibits minimal working capital and equity, typical for startups, and must focus on strengthening liquidity and capitalization to avoid financial distress as it grows. With prudent cash management and targeted growth strategies, the company can build a healthy financial foundation for the future.

BLAKE BUILDING & CO LIMITED - Analysis Report

Company Number: 14801528

Analysis Date: 2025-07-20 11:23 UTC

Financial Health Assessment for BLAKE BUILDING & CO LIMITED (as at 30 April 2024)

---

1. Financial Health Score: D

Explanation:
As a newly incorporated small construction business with minimal operating history, the company shows very limited financial substance at this stage. The net current assets and net assets are positive but extremely small (£72), indicating a fragile financial base. The company is in its infancy, with minimal capital (£2 share capital) and no significant accumulated profits yet. This score reflects an early-stage business with a need for cautious financial management and growth.

---

2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	6,798	Mainly debtors (amounts owed to the company), indicating some business activity and receivables.
Current Liabilities	6,726	Almost equal to current assets, showing tight liquidity margin.
Net Current Assets	72	Positive but minimal working capital, suggesting a "thin margin" for meeting short-term obligations.
Net Assets (Shareholders’ Funds)	72	Very low equity base, typical for a new company but indicates limited financial buffer.
Called-up Share Capital	2	Minimal capital invested by shareholders, common for startups but signals limited initial funding.
Number of Employees	1	Sole director also serving as the only employee, indicative of micro-business status.

Interpretation:
The company’s "vital signs" resemble a patient in early recovery: the heart (cash flow potential) is beating, but the pulse is weak. The small positive working capital is a good sign, but it leaves little room for unexpected expenses or cash flow delays. The company depends heavily on timely collection of receivables and careful management of payables.

---

3. Diagnosis:

• Business Stage: Startup phase with limited operational history. The company is in a fragile financial state due to minimal capital and narrow working capital buffer.
• Liquidity: Adequate but precarious liquidity—current assets just cover current liabilities, leaving little margin for error.
• Capitalization: Under-capitalized at this point, which is normal for a new company but risky if business growth or cash needs increase rapidly.
• Profitability: No P&L data disclosed, but the profit and loss reserve is £70, implying only nominal retained earnings or initial profits.
• Risk Factors: High dependency on prompt receivables collection and tight control over liabilities. Any delays in payments or unexpected costs could quickly stress the financial system.
• Governance: Single director and sole employee managing operations, which may limit internal checks and balances but is typical in micro-businesses.

Summary Diagnosis: The company’s financial health is that of an early-stage micro-enterprise with minimal financial resources. It is not yet showing symptoms of distress but remains vulnerable to cash flow shocks and operational risks.

---

4. Recommendations:

• Increase Capital Base: Consider injecting additional equity or securing a small business loan to build a stronger financial cushion.
• Cash Flow Management: Maintain rigorous monitoring of receivables and payables to avoid liquidity crunches—healthy cash flow is critical.
• Build Profitability: Focus on winning profitable contracts and managing costs effectively to build retained earnings.
• Financial Planning: Develop a detailed cash flow forecast and budget to anticipate funding needs and avoid surprises.
• Risk Mitigation: Establish contingency plans for delayed payments or cost overruns, especially given the narrow working capital.
• Governance: As the company grows, consider appointing additional directors or advisors to strengthen oversight and strategic planning.

---