D C BUILDERS & SONS (WEST MIDLANDS) LTD

Executive Summary

D C BUILDERS & SONS (WEST MIDLANDS) LTD is a recently formed micro-entity in the construction sector with a modest equity base but a working capital deficit. The company currently relies on director advances to support liquidity, and lacks an operational track record to fully assess creditworthiness. Conditional approval is recommended, subject to close monitoring of liquidity, operational performance, and timely filing of future financials.

D C BUILDERS & SONS (WEST MIDLANDS) LTD - Analysis Report

Company Number: 15024018

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D C BUILDERS & SONS (WEST MIDLANDS) LTD is a newly incorporated micro-entity (incorporated July 2023) operating in demolition and civil engineering. The company shows a positive net asset position (£59k) but current liabilities exceed current assets by £28.6k, indicating a working capital deficit. Given the short trading history (less than one year of accounts), limited financial track record, and working capital pressure, credit approval should be conditional on close monitoring of liquidity and timely filing of subsequent accounts to confirm operational performance and cash flow generation. Director advances of £8.4k suggest some internal funding support, which is positive but also indicative of tight external liquidity.

2. Financial Strength:

• Fixed assets of £87,711 show some investment in long-term resources, appropriate for construction activities.
• Current assets of £133,094 versus current liabilities of £161,734 indicate a net current liability position of £28,640, which is a concern for short-term solvency.
• Shareholders’ funds of £59,071 imply the business has a modest equity buffer but with limited scale.
• The financials reflect a micro-entity exemption with minimal disclosure, limiting detailed financial strength analysis.

3. Cash Flow Assessment:

• Negative working capital position points to potential liquidity constraints in meeting short-term obligations.
• Director credit balances (£8,424) imply reliance on shareholder/director funding to support cash flow.
• No P&L information available; profitability and cash generation capacity are unknown at this stage, increasing risk.
• Average employee count of 4 signifies a small operational base, which could limit overhead but also restrict revenue growth potential initially.

4. Monitoring Points:

• Timely submission and analysis of next full set of accounts to assess revenue growth, profitability, and cash flow trends.
• Monitor changes in working capital and any improvements in current asset coverage of current liabilities.
• Directors’ financial support levels and any external borrowing details.
• Payment history on any trade credit or bank facilities extended.
• Changes in ownership or management structure that could impact governance or financial control.