BUILDCAMP LTD

Executive Summary

Buildcamp Ltd demonstrates improving financial health with increased net assets and positive working capital, supported by timely regulatory filings. However, substantial director loans with no fixed repayment terms and limited operating scale present liquidity and governance risks. Further due diligence on director advances and operational sustainability is recommended to fully assess risk.

BUILDCAMP LTD - Analysis Report

Company Number: 13343957

Analysis Date: 2025-07-29 18:29 UTC

1. Risk Rating: MEDIUM
   Justification: Buildcamp Ltd shows positive net assets and a solid increase in working capital in the latest financial year, indicating improving solvency. However, the presence of significant director loans with no fixed repayment terms, coupled with relatively small scale operations as a micro-entity, introduces liquidity and governance concerns.

2. Key Concerns:

• Director Loans: The company has advanced substantial sums to its directors (£60k and £15k), recorded as debtors with no interest or fixed repayment schedule, posing potential risk to cash flow and creditor priority.
• Limited Operating Scale: As a micro-entity with only two employees and modest fixed assets, business sustainability and growth prospects remain uncertain.
• Concentrated Control: Two directors/shareholders control the company with significant influence over appointments and voting, which may increase governance risk if conflicts of interest arise.

3. Positive Indicators:

• Improved Financial Position: Net assets increased markedly from £124 in 2023 to £34,757 in 2024, driven by a substantial rise in current assets and net current assets from £5k to £25k.
• Compliance: The company is up to date with filings and accounts, with no overdue returns or accounts, indicating good regulatory compliance.
• Positive Working Capital: Net current assets are healthy at £25,842, suggesting the company can meet short-term obligations.

4. Due Diligence Notes:

• Investigate the nature and recoverability of director loans to confirm they will not impair liquidity or creditor rights.
• Review cash flow statements and bank reconciliations to assess actual liquidity beyond balance sheet figures.
• Ascertain plans for scaling the business and improving operational sustainability given the micro scale and limited fixed assets.
• Consider governance practices given the concentrated control by two directors and their financial transactions with the company.