DESIGN AND BUILD STATION LTD

Executive Summary

Design and Build Station Ltd is an early-stage construction startup with a modest but stable financial base and adequate liquidity at present. Credit approval is conditional, pending evidence of revenue growth and improved cash flow sustainability. Ongoing monitoring of operational progress and financial discipline is essential to mitigate the inherent risks of a new company in this sector.

DESIGN AND BUILD STATION LTD - Analysis Report

Company Number: 14681445

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Design and Build Station Ltd is a newly incorporated private limited company (incorporated February 2023) with a clean filing record and no overdue statutory returns. The company operates in the construction of domestic buildings, a sector that can be volatile but offers growth potential if managed prudently. The financial information shows a modest net asset base of £2,730 and positive working capital, supported by cash of £15,248 against current liabilities of £12,518. However, the company has no turnover or employees reported yet, indicating it is still in its startup phase. Credit approval would be conditional on monitoring the company’s ability to generate revenue and improve liquidity within the next 12 months, as well as confirming that the director maintains good governance and financial discipline.

2. Financial Strength:
   The balance sheet is minimal but balanced, with net assets of £2,730 consisting primarily of cash (£15,248) less current liabilities (£12,518). There are no fixed assets or long-term liabilities, which is typical for a startup at this stage. Shareholders’ funds equal net assets, indicating no external debt. The current liabilities include corporation tax, accrued expenses, other creditors, and directors’ current accounts, which appear manageable given the cash position. The absence of employees suggests low operating costs currently, but also limited trading activity. Overall, financial strength is weak but stable, with no sign of financial distress.

3. Cash Flow Assessment:
   Cash at bank stands at £15,248, exceeding current liabilities, resulting in positive net current assets of £2,730. This indicates adequate short-term liquidity to cover obligations for the time being. However, the company’s cash flow appears dependent on the director’s funding and accrued liabilities, with no reported trading income yet. Without turnover or operational cash inflows, ongoing liquidity depends on additional capital injections or timely payment from future customers. Working capital management will be critical as the business scales.

4. Monitoring Points:

• Revenue generation and evidence of sustainable cash inflows in subsequent periods.
• Management of current liabilities, especially accrued expenses and director’s current account balances.
• Timely filing of future accounts and confirmation statements to maintain statutory compliance.
• Any changes in director or ownership structure that could impact governance or control.
• External economic factors affecting the UK domestic construction market that could influence business resilience.