BX CONSTRUCTION LTD

Executive Summary

BX CONSTRUCTION LTD currently shows high financial risk due to persistent negative net assets and working capital deficits, indicating solvency and liquidity challenges. While statutory compliance is maintained, the lack of employees and audit coverage constrains operational transparency. Further inquiry into the company’s business viability and financial plans is recommended before considering investment.

BX CONSTRUCTION LTD - Analysis Report

Company Number: 13975769

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   BX CONSTRUCTION LTD exhibits significant solvency and liquidity concerns as evidenced by persistent net current liabilities and negative net assets over the past three financial years. The company’s inability to generate positive working capital or equity raises a high risk of financial distress.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £1,801 at the last financial year-end, indicating that liabilities exceed assets and shareholder equity is negative.
• Working Capital Deficit: Consistently negative net current assets (£-1,801 in 2024) highlight the company’s inability to cover short-term obligations with current assets.
• No Employees or Audit: The company has no employees and has not undergone an audit, limiting transparency on operational viability and financial controls.

3. Positive Indicators:

• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue returns or penalties.
• Ownership and Control Transparency: The sole director and 75-100% shareholder, Mr. Ksaveras Steponavicius, maintains clear control, which may facilitate swift decision-making.
• Start-Up Phase: Being incorporated in 2022 and classified as a micro-entity, the company is still in an early stage, which may partly explain weak financials.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue streams to determine operational sustainability given the absence of employees and negative equity.
• Review cash flow forecasts and creditor arrangements to assess short-term liquidity risks and potential for creditor pressure or insolvency proceedings.
• Clarify whether the director plans capital injections or restructuring to address the negative net asset position.
• Confirm absence of related party transactions or contingent liabilities that could impact financial stability.
• Obtain management commentary or strategic plans regarding growth or turnaround efforts.