BUILDING SERVICES TT LTD

Executive Summary

Building Services TT Ltd is in a financially distressed position with persistent negative net assets and critically low cash balances, indicating an impaired ability to meet debt obligations. The company’s limited scale and short trading history increase credit risk, warranting a decline of credit facilities unless significant remedial actions or capital support are demonstrated. Continuous cash flow monitoring and capital restructuring are essential to improve credit viability.

BUILDING SERVICES TT LTD - Analysis Report

Company Number: 13151038

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: DECLINE
   Building Services TT Ltd exhibits significant financial distress with persistent negative net assets and very limited current assets relative to current liabilities. The company has net liabilities of £14,222 as of January 2024, indicating insolvency on a balance sheet basis. Cash balances have sharply reduced to £167 from £56,024 the prior year, impairing liquidity. This poor financial position suggests an inability to service new or existing debt reliably without substantial capital injection or operational turnaround. The company's short operating history (incorporated 2021) and limited scale (2 employees) add uncertainty to stability and creditworthiness.

2. Financial Strength:
   The balance sheet shows very weak financial health. Fixed assets are minimal (£2,757) and current liabilities (£17,146) exceed current assets (£167) by a wide margin, resulting in negative working capital of £16,979. Shareholders’ funds are negative at £14,223, reflecting accumulated losses with no retained earnings buffer. The trend shows erosion of net assets from a small positive in 2021 to increasingly negative in subsequent years. This indicates ongoing losses or write-downs that undermine capital structure and solvency.

3. Cash Flow Assessment:
   Cash at bank and in hand has collapsed to £167 from £56,024 the prior year, signaling severe liquidity constraints. With current liabilities of £17,146 due within one year, the company likely faces difficulty meeting short-term obligations without external financing or asset sales. The absence of significant current assets beyond cash implies no readily convertible resources, making working capital management a critical concern.

4. Monitoring Points:

• Regular updates on cash flow and liquidity status to ensure ongoing operational funding.
• Changes in current liabilities level and any new financing arrangements.
• Turnaround in profitability or operational cash generation to restore net asset position.
• Any material changes in ownership or capital structure that could improve solvency.
• Directors’ plans or strategies for financial restructuring or capital injection.