COMPLETE BUILDING SOLUTIONS (CBS) LTD

Executive Summary

Complete Building Solutions (CBS) Ltd faces elevated financial risk due to persistent negative net assets and a working capital deficit, highlighting solvency and liquidity concerns. While the company remains compliant with filing obligations and operationally active, the negative equity and creditor structure warrant close scrutiny. Further investigation into contract accounting, creditor terms, and cash flow management is advisable before considering investment.

COMPLETE BUILDING SOLUTIONS (CBS) LTD - Analysis Report

Company Number: 13139085

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant net liabilities as of the latest financial year end, with shareholders’ funds deteriorating from positive to substantially negative within a short period. Current liabilities exceed current assets by a sizeable margin, and the company carries considerable long-term creditors. The cash balance is low relative to liabilities, indicating liquidity strain. These factors combined suggest a heightened risk of solvency issues.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds moved from £40k positive in 2023 to approximately £44k negative in 2024, indicating accumulated losses and erosion of equity.
• Working Capital Deficit: Current liabilities (£87k) significantly exceed current assets (£33k), with cash holdings particularly low at £2.6k, raising concerns about ability to meet short-term obligations.
• Long-Term Creditors: The presence of £87k in creditors due after more than one year suggests reliance on external financing or deferred payments, adding pressure on cash flows and solvency.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory adherence and good governance procedures.
• Operational Continuity: The company remains active since incorporation in 2021 and employs 2 people, including directors, showing ongoing business activity.
• Industry Focus: Operating in construction of domestic buildings (SIC 41202) — a sector with consistent demand generally supportive of steady revenues if well managed.

4. Due Diligence Notes:

• Examine detailed contract performance and revenue recognition policies due to use of stage of completion accounting, which can affect reported turnover and profitability.
• Investigate the nature and terms of the long-term creditors to assess repayment schedules, interest obligations, and any covenants that could impact financial stability.
• Review cash flow statements and management forecasts to assess liquidity management and the company’s ability to fund working capital needs.
• Assess directors’ plans to address the negative equity position and whether additional capital injections or restructuring is anticipated.