BUILD D & C LTD

Executive Summary

BUILD D & C LTD exhibits high risk due to a marked deterioration from positive net assets to net liabilities within one year, signaling solvency and liquidity concerns. While compliance with filing requirements is maintained, the financial instability combined with recent director turnover and ownership concentration warrants thorough investigation before investment consideration.

BUILD D & C LTD - Analysis Report

Company Number: 14354302

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position within one year, moving from positive net current assets and shareholders funds (£11,560) in 2023 to negative net current assets and net liabilities of £-3,433 in 2024. This indicates solvency risk and potential liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Working Capital: The 2024 accounts reveal net liabilities of £3,433 and negative working capital, raising concerns about the company’s ability to meet short-term obligations.
• Rapid Financial Decline: A sharp drop from a positive net asset position in 2023 to negative in 2024 suggests operational or financial difficulties within a single year of trading.
• Director Changes and Control Concentration: Two directors resigned in August 2023 and were replaced by a single director who holds 75-100% ownership. This concentration of control alongside financial deterioration may impact governance and decision-making transparency.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance so far.
• Micro-Entity Filing Status: As a micro-entity, the company benefits from simplified reporting, reducing administrative burden.
• Active Status and Incorporation Date: The company is active and recently incorporated (September 2022), indicating it is in early stages of development and potentially still stabilizing financially.

4. Due Diligence Notes:

• Investigate the causes behind the decline in current assets and increase in current liabilities between 2023 and 2024, including any operational disruptions or extraordinary expenses.
• Review cash flow statements (not provided) to assess liquidity and short-term cash management.
• Understand the impact of director changes in August 2023 on company strategy and financial health.
• Assess the business model sustainability given the negative net assets and limited employee base (1 employee).
• Confirm if any contingent liabilities or pending obligations exist that could exacerbate financial distress.
• Review any related party transactions, especially given the concentration of ownership by one director.