CONSTRUCTION UK SOLUTIONS LTD

Executive Summary

CONSTRUCTION UK SOLUTIONS LTD is financially stable but shows early signs of weakening, evidenced by a significant decline in net assets and working capital. The company remains solvent with positive equity, but to avoid further deterioration, it should focus on improving cash flow, controlling costs, and reinvigorating revenue streams. Proactive financial management will be key to sustaining and improving its financial health in the near term.

CONSTRUCTION UK SOLUTIONS LTD - Analysis Report

Company Number: 14378379

Analysis Date: 2025-07-29 19:48 UTC

Financial Health Assessment for CONSTRUCTION UK SOLUTIONS LTD

---

1. Financial Health Score: C

Explanation:
The company shows modest financial stability typical for a micro-entity in its early years. While it maintains positive net current assets and shareholders' funds, there is a noticeable decline in total net assets from £9,899 in 2023 to £2,055 in 2024. This drop signals potential concerns that require close monitoring. The absence of fixed assets in the latest year also indicates reduced long-term investment. Overall, the company is financially stable but exhibits early warning signs of distress.

---

2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	0	958	Loss of fixed assets may indicate asset disposals or lack of reinvestment.
Current Assets	2,624	11,125	Significant decrease in liquid resources; potential cash flow tightening.
Current Liabilities	569	2,184	Current liabilities decreased, which is positive but driven by less business activity.
Net Current Assets	2,055	8,941	Working capital has shrunk considerably, suggesting reduced short-term financial buffer.
Net Assets / Shareholders’ Funds	2,055	9,899	Equity reduced sharply, indicating potential operational losses or capital withdrawal.
Company Age	~2 years	-	Early-stage company with limited financial history and growth track record.
Account Category	Micro	Micro	Limited disclosure and smaller scale business, typical cash flow sensitivity.

Interpretation:
The "vital signs" reveal a company whose financial "pulse" is weakening. The significant shrinkage in assets and equity resembles symptoms of financial stress—possibly due to trading losses, reduced sales, or one-off expenses. The positive net current assets indicate the company can meet short-term obligations, but the narrowing margin reduces its "resilience." The disappearance of fixed assets suggests a shift away from capital investment or asset disposals, which could affect future revenue generation.

---

3. Diagnosis

The financial data for CONSTRUCTION UK SOLUTIONS LTD paints the picture of an early-stage micro-entity that has experienced a contraction in financial resources over the most recent year. The company remains solvent with positive net current assets and equity, which is a good sign of "cardiovascular" health in business terms. However, the sharp decline in equity and working capital signals symptoms akin to "fatigue" or "weakness" in the business’s financial structure.

Potential causes for this financial "symptom" might include:

• Reduced sales or revenue impacting cash inflows.
• Increased operating expenses or unexpected costs.
• Disposal or write-down of fixed assets indicating cutbacks or operational restructuring.

The company does not appear to be in immediate distress (no overdue filings, no liquidation status), but the trend suggests caution. The business’s financial "immune system" is currently fragile and would benefit from measures to strengthen liquidity and profitability.

---

4. Recommendations

To improve financial wellness and mitigate symptoms of distress, the following steps are advised:

1. Enhance Cash Flow Management

   • Monitor receivables and payables closely to avoid liquidity crunches.
   • Negotiate better payment terms with suppliers and customers to smooth cash flow.

2. Cost Control and Expense Review

   • Undertake a detailed review of operating expenses to identify and eliminate inefficiencies.
   • Avoid unnecessary capital expenditures until financial health improves.

3. Revenue Growth Initiatives

   • Focus on expanding customer base or increasing sales volumes in core SIC code activities (business support services, wholesale of construction materials).
   • Explore partnerships or contracts that provide steady income streams.

4. Asset Management

   • Consider rehiring or reinvesting in fixed assets if it supports revenue generation but balance this with cash flow constraints.
   • Maintain adequate working capital to ensure operational flexibility.

5. Financial Monitoring and Forecasting

   • Implement regular financial health checks and cash flow forecasts to anticipate and respond to financial pressures early.
   • Engage with financial advisors or mentors to strengthen financial planning.

6. Maintain Compliance and Filing Discipline

   • Continue timely submission of accounts and confirmation statements to avoid penalties and maintain credibility.

---