BUILD DREAM CONSTRUCTIONS LTD
Executive Summary
BUILD DREAM CONSTRUCTIONS LTD is currently a dormant, newly incorporated company with minimal financial activity and nominal net assets. Its financial health reflects an early-stage start-up yet to commence trading. To improve financial wellness, the company must focus on initiating operations, managing cash flow prudently, and adhering to compliance requirements as it transitions to active business.
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This analysis is opinion only and should not be interpreted as financial advice.
BUILD DREAM CONSTRUCTIONS LTD - Analysis Report
Financial Health Score:
Grade: D (Dormant Status with Minimal Financial Activity)
Explanation: BUILD DREAM CONSTRUCTIONS LTD is a newly incorporated company classified as dormant with minimal financial activity. The financial metrics are extremely limited, reflecting virtually no operational or trading activity to date. While this is not inherently negative for a company in its first year, it does indicate no current business vitality or cash flow generation.
Key Vital Signs
- Company Age: Incorporated June 2023, just over 1 year old.
- Status: Active but Dormant (no significant trading activity).
- Cash at Bank: £10 – negligible cash reserves.
- Net Assets / Shareholders Funds: £10 – reflecting only the nominal share capital.
- Financial Activity: No turnover or expenses reported; accounts filed as dormant under section 480.
- Filing Compliance: Up-to-date with accounts and confirmation statement filings, no overdue filings.
- Ownership and Control: Single director and sole shareholder (Harmeet Singh) with full control.
- Industry: Construction of domestic buildings (SIC 41202).
Symptoms Analysis
The financial "vital signs" suggest BUILD DREAM CONSTRUCTIONS LTD is currently in a state of financial hibernation. The company has not yet commenced trading or generated revenue, as evidenced by the dormant accounts and extremely low cash balance. This is typical for a start-up in its initial phase before business operations begin.
The "symptoms" here include:
- No Operating Cash Flow: No revenue or expenses, so no cash inflow from business activities.
- Minimal Net Assets: Only the initial share capital, indicating no asset acquisition or business investment yet.
- Dormant Filing Status: The company has claimed dormant status, which simplifies reporting but also signals inactivity.
- Single Shareholder/Director Control: The company is tightly controlled, which is normal for a start-up but implies all strategic decisions rest on one individual.
These signs highlight the early developmental stage rather than distress. No financial distress symptoms such as liabilities, negative net assets, or cash flow pressures are present — simply an absence of trading activity.
Diagnosis
BUILD DREAM CONSTRUCTIONS LTD is effectively in a "pre-operational" stage. The financial health is neutral rather than robust or distressed. It is akin to a patient in a dormant or resting state awaiting activation. The company shows no signs of financial stress but also no evidence of operational success or growth yet.
Its financial foundation is minimal but clean—no debts, no losses, just the initial capital nominally recorded. The key risk is the uncertainty about if and when business operations will commence and generate sustainable cash flow. The company has a clean compliance record, which is a positive sign for governance and regulatory adherence.
Prognosis
If the company moves from dormancy to active trading, its financial health will depend on:
- Effective business development and securing contracts for domestic building construction.
- Managing working capital carefully to avoid liquidity strain.
- Building a cash flow buffer beyond the nominal initial capital.
- Monitoring costs closely to prevent early losses that could jeopardize solvency.
Without operational activity, the company remains in a stable but inactive state. The prognosis for financial health improvement is good if the business plan is executed successfully. However, prolonged dormancy beyond typical start-up incubation periods may risk loss of market relevance or challenges in raising capital.
Recommendations
- Commence Trading Activities: Initiate business operations to generate revenue and build cash flow. This is essential to transition from dormancy to a financially healthy, operating company.
- Cash Management: Maintain a healthy cash buffer to cover initial operational expenses and avoid liquidity shortages.
- Regular Financial Monitoring: Implement monthly or quarterly financial reviews to track expenses, revenues, and cash flow as trading begins.
- Seek Professional Advice: Consider consulting construction industry experts and financial advisors to refine business strategy and financial planning.
- Compliance Vigilance: Continue timely filing of accounts and confirmation statements to maintain good standing.
- Build Creditworthiness: As the business grows, aim to establish relationships with suppliers and lenders to support working capital needs.
- Consider Capital Requirements: Evaluate if additional capital injections or external funding will be necessary to support growth beyond the initial £10 share capital.
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