BSG BUILD & DESIGN LTD

Executive Summary

BSG BUILD & DESIGN LTD presents a financially weak profile with negative net assets and significant liquidity constraints. The company’s current and long-term liabilities exceed assets, raising concerns about its ability to service debt and maintain operations without further capital support. Credit facilities are not recommended at this time absent evidence of financial turnaround or strengthened liquidity.

BSG BUILD & DESIGN LTD - Analysis Report

Company Number: 13896243

Analysis Date: 2025-07-29 21:02 UTC

1. Credit Opinion: DECLINE
   BSG BUILD & DESIGN LTD shows significant financial distress with net liabilities reported in the latest accounts (net assets of -£11,048 as of 28 Feb 2024, down from -£19,487 the previous year). The company’s current liabilities exceed its current assets by £17,753, indicating poor short-term liquidity and working capital challenges. The large creditor balances falling due after one year (£16,200) further exacerbate solvency concerns. Given these indicators, the company’s ability to meet debt obligations and sustain credit facilities is highly questionable without additional capital injection or restructuring.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Fixed assets remain stable but are minimal at approximately £23k. Current assets have increased from £2,842 to £10,833, which is positive, but current liabilities have surged sharply from £5,213 to £28,586. The company is operating with a negative net current asset position and overall negative net assets. Shareholders’ funds are negative, reflecting accumulated losses or capital erosion. This undermines the company’s financial resilience and capacity to absorb shocks or economic downturns.

3. Cash Flow Assessment:
   Negative working capital and large creditor balances due within one year suggest liquidity stress. The increase in current liabilities without a proportional increase in current assets points to potential cash flow mismatches, risking late payments to suppliers or creditors. The micro-entity size and minimal employee base (2 employees) limit operational scale but also constrain cash generation capacity. There is no disclosed cash or cash equivalents figure, but the net current liability position implies strained liquidity.

4. Monitoring Points:

• Monitor quarterly or interim financial updates for improvement in working capital and net assets.
• Watch for any director or shareholder capital injections or debt restructuring arrangements.
• Track payment patterns to suppliers and creditors to detect any emerging defaults or late payments.
• Review for overdue filings or changes in director status that may signal operational or governance risks.