BUILDING SERVICE SOLUTIONS LIMITED

Executive Summary

Building Service Solutions Limited shows a concerning deterioration in financial health over the past year, with liquidity and solvency indicators signaling elevated risk. Although regulatory filings are up to date, the steep decline in net assets and minimal cash reserves raise significant questions about operational sustainability and governance. Further due diligence into financial and management practices is recommended before investment consideration.

BUILDING SERVICE SOLUTIONS LIMITED - Analysis Report

Company Number: 13658543

Analysis Date: 2025-07-20 19:05 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net assets and working capital within a single year, with net assets dropping from £59,972 in 2022 to £3,248 in 2023. The near break-even net current assets (£1,167) and minimal cash balance (£860) raise concerns about liquidity and ability to meet short-term obligations.

2. Key Concerns:

• Sharp Decline in Financial Position: Net assets declined drastically by approximately 95%, indicating potential losses or significant distributions impacting capital.
• Liquidity Risk: Cash reserves are critically low at £860 against current liabilities of £143,440, suggesting an inability to cover immediate debts without relying on debtor collection or external financing.
• Concentration of Control and Director Turnover: The majority ownership (75-100%) by a single individual and recent frequent changes in directors could signal governance issues or operational instability.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating regulatory compliance to date.
• Established Accounting Policies: The company follows FRS 102 with clear accounting policies and disclosures, which supports transparency.
• Minor Fixed Assets Presence: Tangible assets indicate some operational base, albeit minimal (£2,668 net book value).

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and working capital between 2022 and 2023, including detailed review of profit and loss accounts and any significant transactions or distributions (noting dividends of £132,550 paid in 2023).
• Assess cash flow timing and debtor collectability given high debtor balance (£143,747) relative to cash and liabilities to understand liquidity risk.
• Review director turnover reasons and governance practices, particularly the resignation of two directors in 2023 and concentration of shareholding.
• Confirm absence of any contingent liabilities or off-balance sheet risks given the small provision for liabilities noted (£587).
• Verify operational status and customer base given limited employee count (average 1 employee in 2023).