CUBIC BUILD LTD

Executive Summary

CUBIC BUILD LTD, a newly incorporated micro-entity in management consultancy, currently exhibits financial distress with negative working capital and net assets, indicating undercapitalization and liquidity challenges. Immediate capital infusion and careful financial management are recommended to stabilize and transition towards operational activity and revenue generation.

CUBIC BUILD LTD - Analysis Report

Company Number: 14594125

Analysis Date: 2025-07-29 14:46 UTC

Financial Health Assessment Report for CUBIC BUILD LTD

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1. Financial Health Score: D

Explanation:
The financial health grade D reflects a concerning state primarily driven by negative net current assets and net liabilities as per the latest accounts. Despite being a newly incorporated micro-entity with minimal operations, the company exhibits signs of financial distress that require close monitoring and remedial action.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term assets, typical for a startup or micro-entity with limited capital investment.
Current Assets	89	Minimal liquid or short-term assets available, indicating very limited operational cash or receivables.
Current Liabilities	1,950	Short-term obligations exceed current assets substantially, a red flag for liquidity concerns.
Net Current Assets (Working Capital)	-1,861	Negative working capital, meaning the company owes more in short-term debts than it owns in liquid assets.
Net Assets (Total Equity)	-1,861	Negative net asset position indicates the company’s liabilities exceed its assets — a sign of insolvency "symptom".
Shareholders’ Funds	-1,861	Reflects the same net asset deficiency; shareholders’ equity is negative, implying accumulated losses or undercapitalization.
Employees	0	No employees, likely the company is in early startup phase or dormant operationally.
Account Category	Micro	Minimal filing requirements but financial metrics are critical to evaluate early-stage health.

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3. Diagnosis

• Liquidity Distress: The company shows "symptoms of distress" with a negative working capital balance of £1,861. This means current liabilities far exceed current assets, posing a risk to meeting short-term obligations without additional funding or cash inflows.

• Under-Capitalization: Negative net assets indicate the company is effectively insolvent on a balance sheet basis. This could be due to initial setup costs, unpaid liabilities, or lack of investment capital.

• Early Stage/Startup Status: Incorporated in January 2023, the company is very young. The absence of fixed assets and employees suggests the company is in its formative stage, likely incurring initial expenses without generating revenue yet.

• Single Director and PSC: Control is tightly held by one individual, which can facilitate quick decision-making but also concentrates risk.

• No Audit or Extensive Filings: As a micro-entity, the company benefits from simplified reporting, but the lack of detailed financial and operational disclosures limits transparency.

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4. Recommendations

To improve financial wellness and avoid further deterioration, the company should consider the following:

• Inject Additional Capital: To remedy negative equity and improve liquidity, the controlling shareholder or new investors should consider capital injections or loans to strengthen the balance sheet.

• Manage and Reduce Short-Term Liabilities: Negotiate with creditors to extend payment terms or reduce outstanding debts to improve working capital.

• Develop Cash Flow Projections: Prepare detailed cash flow forecasts to anticipate funding needs and plan accordingly.

• Begin Revenue Generation: Prioritize strategies to start operations or secure contracts to bring in revenue and create a "healthy cash flow" cycle.

• Regular Financial Monitoring: Establish monthly financial reviews focusing on liquidity and solvency metrics to detect early warning signs of distress.

• Explore Grants or Funding Support: Investigate government or private grants aimed at startups in management consultancy to supplement capital.

• Maintain Compliance: Ensure all filings are made timely to avoid penalties and maintain corporate good standing.

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