BUILDTECH LTD

Executive Summary

Buildtech Ltd is a newly incorporated small building completion company exhibiting significant liquidity and leverage risks, primarily due to large finance lease liabilities and net current liabilities exceeding current assets. While statutory compliance is maintained and net assets remain positive, limited operational history and cash flow constraints present material risks to financial stability. Further due diligence on cash flow projections, lease obligations, and business prospects is recommended before investment consideration.

BUILDTECH LTD - Analysis Report

Company Number: 14616492

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: HIGH
   Justification: Buildtech Ltd’s financials reveal significant liquidity concerns with net current liabilities of £14,460 against current assets of only £11,652 as of 31 March 2024. The company also carries substantial short-term finance lease obligations (£25,844) that exceed its cash resources (£4,928). Being a very new company incorporated in early 2023 and reporting a net asset value of only £8,609 indicates limited financial buffer to absorb shocks or operational setbacks.

2. Key Concerns:

• Liquidity Risk: Current liabilities exceed current assets by a substantial margin, indicating potential cash flow constraints to meet short-term obligations.
• High Leverage via Finance Lease: The £25,844 finance lease debt is a large liability relative to the company’s size and cash reserves, increasing financial risk.
• Limited Operating History: Incorporated in January 2023, the company has a very short track record, which limits visibility on operational performance and sustainability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Positive Net Assets: Despite liquidity issues, the company shows positive net assets (£8,609), suggesting some equity cushion.
• Clear Ownership and Governance: Directors and secretary appointments are current and transparent, with no evidence of disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the finance lease obligations, including payment schedules and impact on cash flow.
• Review detailed turnover and profitability metrics beyond the current filleted accounts to assess revenue generation and margins.
• Confirm the company’s contract pipeline and customer base stability given its recent start and industry sector (building completion and finishing).
• Assess management experience and potential related-party transactions, especially given the significant control held by the principal director.