BUILD AND CONVERT DEVELOPMENTS LIMITED

Executive Summary

Build and Convert Developments Limited demonstrates concerning financial indicators, notably a negative net asset position and significantly reduced liquidity as of the latest accounts. While compliance with filings is maintained and fixed assets have grown, the company’s solvency risk and operational scale warrant further investigation before investment consideration. Additional scrutiny on liabilities and cash flow management is recommended to better understand financial stability.

BUILD AND CONVERT DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13123368

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£1,861 deficit) as of 31 March 2025, with long-term liabilities exceeding total assets. This indicates potential solvency concerns. The sharp reduction in current assets and working capital between 2024 and 2025 raises liquidity red flags.

2. Key Concerns:

• Solvency Risk: Total net liabilities of £1,861 as of 2025, worsening from a positive net asset position previously, suggests the company may struggle to meet long-term obligations.
• Liquidity Concerns: Current assets dropped from £121,019 in 2024 to £18,087 in 2025 while current liabilities remained high, indicating strained short-term liquidity and working capital issues.
• Operational Sustainability: The company reports zero employees and minimal share capital (£1), which may reflect limited operational scale or undercapitalization.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time, showing good regulatory compliance.
• Fixed Assets Growth: Increase in fixed assets from £233,348 in 2024 to £344,265 in 2025 may indicate investment in operational capacity or property holdings aligned with its real estate activities.
• Active Website and Contact Info: The company maintains an active web presence and provides contact details, supporting transparency and business continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £361k long-term liabilities to assess repayment risk and covenants.
• Clarify the drop in current assets and net current assets from 2024 to 2025, including cash flow drivers and creditor arrangements.
• Review management plans for addressing negative net assets and liquidity challenges, including funding strategies or asset disposals.
• Verify the operational model given zero reported employees and minimal share capital; understand if subcontractors or third parties are engaged.
• Confirm absence of director disqualifications or governance issues through Companies House director conduct records.