BNS BUILDING SERVICES LIMITED

Executive Summary

BNS Building Services Limited is currently experiencing significant financial distress with negative net assets and a worsening liquidity position. The company’s ability to meet short-term liabilities is weak, and without external financial support or operational improvement, it poses a high credit risk. Close monitoring of cash flows, creditor payments, and any capital support is essential before considering credit facilities.

BNS BUILDING SERVICES LIMITED - Analysis Report

Company Number: 13939480

Analysis Date: 2025-07-19 12:15 UTC

1. Credit Opinion: DECLINE
   BNS Building Services Limited presents a weak credit profile with persistent negative net assets and net current liabilities, indicating insolvency on a balance sheet basis. The company has been trading since 2022 and shows deteriorating financial position with net liabilities worsening from approximately £10,600 in 2023 to over £30,600 in 2024. Current liabilities substantially exceed current assets, signaling liquidity stress and an inability to meet short-term obligations fully. Given these factors and the absence of any mitigating information about profit generation or external funding, the company is not currently creditworthy for new lending or extended trade credit without significant risk mitigation.

2. Financial Strength:
   The balance sheet reveals negative shareholders’ funds (£-30,658) and negative net current assets (£-30,315) as of February 2024. Cash holdings have fallen sharply from £12,497 to £4,291 in the last year, while current liabilities increased from £22,750 to £34,606, mainly comprising taxation and social security costs and trade creditors. The company’s tangible fixed assets appear negligible or not disclosed, so there is limited collateral value. The worsening net liabilities indicate accumulated losses and no retained earnings to support the business financially. Overall, the financial structure is weak and borderline insolvent.

3. Cash Flow Assessment:
   Cash at bank is low (£4,291), insufficient to cover current liabilities (£34,606) due within a year. The negative working capital position signals ongoing cash flow challenges, potentially due to delayed receivables, high payables, or insufficient operating cash inflows. The significant increase in taxation and social security creditors (from £8,000 to £26,506) may reflect unpaid liabilities accruing, adding to liquidity strain. With only one employee reported, operational scale is minimal, but the current cash position does not support timely settlement of obligations, raising concerns about going concern without fresh capital or operational turnaround.

4. Monitoring Points:

• Track cash flow and liquidity monthly, specifically the ability to reduce current liabilities and improve cash balances.
• Monitor tax and social security creditor payments to avoid enforcement action.
• Review any planned capital injections or director loans that could shore up the balance sheet.
• Observe trading performance and contract profitability for signs of operational recovery or further deterioration.
• Keep watch on director conduct and any changes in ownership or management that could impact risk profile.