BUILD MY WAY LTD

Executive Summary

BUILD MY WAY LTD is a very young company with a fragile but stable financial position typical for a start-up in the building development sector. The company shows positive net current assets but limited cash reserves and a small equity base, indicating early-stage financial health with potential liquidity challenges. Careful cash flow management and growth capital support are recommended to strengthen its financial foundation and improve resilience.

BUILD MY WAY LTD - Analysis Report

Company Number: 15220818

Analysis Date: 2025-07-20 16:08 UTC

Financial Health Assessment for BUILD MY WAY LTD

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1. Financial Health Score: C

Explanation:
BUILD MY WAY LTD is a newly incorporated private limited company (incorporated October 2023) operating in building project development. The financials reflect an early-stage business with modest net assets (£398) and very limited cash reserves (£222). The company reports a positive net current asset position, but the scale is minimal. Given these factors, the company’s financial health is stable but fragile, typical of a start-up still in the initial growth phase. The score "C" indicates cautious optimism but highlights the need for careful cash flow management and growth support.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£3,915	Low level of liquid and short-term assets typical for start-up.
Cash at Bank	£222	Very low cash buffer, raising liquidity concerns.
Debtors	£3,693	High relative to cash, indicating cash tied up in receivables.
Current Liabilities	£3,517	Close to current assets, manageable but tight working capital.
Net Current Assets	£398	Positive but slim working capital margin, needs monitoring.
Net Assets (Equity)	£398	Small equity base, reflecting infancy and limited retained earnings.
Share Capital	£100	Nominal share capital, typical for a new company.
Profit & Loss Reserve	£298	Small retained earnings, indicating some profitability or capital contributions.
Employees	2	Very small workforce, typical for start-up phase.
Overdue Filings	No	Compliance with filing deadlines is healthy and reduces risk.

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3. Diagnosis

BUILD MY WAY LTD presents as a very young enterprise with the typical financial "vital signs" of a start-up in a capital-sensitive industry (building projects). The company has a positive net current asset position, showing it can cover short-term liabilities by a narrow margin. However, the cash on hand is extremely low (£222), and most current assets are in debtors (£3,693), which may delay liquidity if payments are slow. This "symptom" suggests potential cash flow vulnerability — a common challenge in construction-related sectors where project payments can lag.

The modest net assets (£398) and small equity base reflect the company’s infancy and limited operational history. The director owns majority control, allowing swift decision-making but also concentrating risk.

The absence of audit requirements and abridged accounts filing is consistent with the company’s small size and start-up status. Compliance with filing deadlines and no overdue returns indicate good governance "health."

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4. Recommendations

To strengthen BUILD MY WAY LTD’s financial health and support sustainable growth, consider the following actions:

• Improve Cash Flow Management:
  Actively monitor and accelerate debtor collections. Consider negotiating better payment terms with customers and suppliers to ensure a "healthy cash flow pulse," reducing reliance on receivables.

• Build Cash Reserves:
  Aim to increase cash balances to provide a buffer against unexpected expenses or project delays. This will help avoid liquidity "symptoms" such as inability to pay creditors on time.

• Expand Equity or Financing:
  Evaluate the need for additional capital injection or external financing to support working capital and investment in growth. This could be through shareholder loans, equity funding, or short-term credit lines.

• Cost Control and Efficiency:
  Maintain tight control over operating expenses given the small scale. Avoid overextending resources until revenue streams stabilize and scale.

• Regular Financial Monitoring:
  Establish routine financial reviews focusing on liquidity ratios and working capital trends to detect early signs of financial stress.

• Business Development:
  As a building project developer, focus on winning contracts that ensure steady cash inflows and diversify client base to reduce concentration risk.

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