BUILDING ENERGY & RETROFIT LTD

Executive Summary

Building Energy & Retrofit Ltd is an early-stage micro-entity with limited financial history and a negative net asset position, indicating weak financial strength and limited capacity to service credit. Given the lack of profitability and minimal asset base, credit approval is not recommended at this time. Close monitoring of cash flow and operational performance is essential before reconsidering credit facilities.

BUILDING ENERGY & RETROFIT LTD - Analysis Report

Company Number: 15170358

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: DECLINE
   Building Energy & Retrofit Ltd is a very recently incorporated micro-entity with minimal financial history and limited operations—only one employee and nominal current assets (£370). The company shows net liabilities (£25), indicating a negative equity position. The lack of profitability data and minimal asset base suggest insufficient capacity to service any significant debt or credit facility at this stage. Furthermore, the company is still in its infancy (incorporated less than 1 year ago), which adds to the risk profile. Without a proven track record, approving credit would be speculative and high risk.

2. Financial Strength:
   The balance sheet is very modest, reflecting a start-up stage. Current assets of £370 exceed current liabilities of £95, resulting in positive net current assets of £275, which indicates a small working capital buffer. However, accruals and deferred income of £300 contribute to net liabilities of £25, showing negative equity and shareholders’ funds. The company is likely funded primarily by shareholder loans or initial capital injection from the sole director and owner. Overall, the financial strength is weak due to the negative net asset position and minimal asset base.

3. Cash Flow Assessment:
   Cash or equivalents are minimal at £370, with very low current liabilities. The company’s liquidity position is fragile but currently not under immediate stress given the low level of liabilities. However, with only one employee and no detailed profit and loss data, it is unclear if operating cash flows are sufficient or positive. The absence of an audit and limited disclosure restricts insight into cash flow trends or sources of funds. Working capital is positive but on a very small scale, making the company vulnerable to any unexpected expenses or delays in revenue.

4. Monitoring Points:

• Track future filings for profit and loss data to assess operational performance.
• Monitor cash balances and working capital trends for liquidity sustainability.
• Observe any increase in current liabilities or accruals that could strain cash flow.
• Watch for changes in ownership or director appointments that might affect governance.
• Pay attention to timely submission of future accounts and confirmation statements to ensure compliance.