BUILDING BRIDGEMAN LTD

Risk Rating: HIGH
The company has negative shareholders’ funds (net liabilities of £23,304 as of November 2024) and a severe liquidity deficit, indicating balance sheet insolvency. While filings are up to date, the financial position has deteriorated since incorporation and raises material going‑concern doubts.

Key Concerns

1. Negative Net Assets & Technical Insolvency
   The latest micro‑entity accounts show total net liabilities of £23,304 (2023: £14,921). Shareholders’ funds are negative, meaning the company’s liabilities exceed its assets. This is a statutory concern under the Companies Act 2006 and would typically require directors to consider insolvency proceedings if the position is not remedied.

2. Critical Liquidity Shortfall
   Current assets (£678) are negligible relative to current liabilities (£47,333), resulting in a net current liability position of –£46,655. Even if long‑term creditors (£66,774) are supportive, the company lacks cash or near‑cash resources to meet obligations falling due within one year. This suggests heavy reliance on short‑term credit or director forbearance.

3. Declining Asset Base & Unclear Profitability
   Total assets fell from £248,796 in 2022 to £90,803 in 2024, driven by a £100,000 drop in fixed assets between 2023 and 2024. This may indicate asset disposals, but the proceeds did not restore positive equity. No revenue or profit figures are disclosed (micro‑entity exemption), making it impossible to assess operating performance. The absence of rental income data is a blind spot for evaluating business sustainability.

Positive Indicators

• Regulatory Compliance
  Accounts and confirmation statements have been filed on time. No overdue filings, penalties, or adverse director conduct records are evident. The directors have acknowledged their statutory responsibilities.

• Controlled Share Structure
  The two directors each hold 25%–50% of shares and voting rights, providing clear ownership and alignment of interest. There are no complex ownership chains or offshore entities.

• Minimal Employee Overhead
  The company reports zero employees, which limits fixed payroll costs and reduces operational risk in a downturn.

Due Diligence Notes

1. Nature of Liabilities & Support Agreements
   Investigate whether the £47,333 due within one year and £66,774 due after one year are director loans, bank debt, or trade creditors. If the majority is owed to directors, the company’s solvency may depend on their willingness to subordinate or convert debt. Obtain written confirmation of any formal or informal support.

2. Asset Disposal & Cash Flow
   The £100,000 reduction in fixed assets (likely property) needs explanation. Was a property sold? If so, what was the gain/loss and how were proceeds applied? Request management accounts showing rental income, operating costs, and actual cash movements for the last 12 months.

3. Going Concern Assessment
   The directors’ report (not provided in available data) should contain a going concern statement. Confirm whether the accounts have been prepared on a going concern basis and what assumptions underpin that view. Given the negative equity, an independent review of forecasts and available liquidity is warranted.

4. Valuation of Fixed Assets
   The remaining fixed assets of £90,125 are likely property. Verify the carrying value against current market conditions. Overstated asset values could further widen the net liability gap.