IMPROVE BUILDING AND MAINTENANCE LTD

Executive Summary

Improve Building and Maintenance Ltd demonstrates compliance and operational continuity but exhibits signs of liquidity strain and declining solvency in its latest financial year. While the company benefits from stable governance and modest asset growth, the negative working capital and increased current liabilities warrant further scrutiny before considering investment. A detailed review of cash flows and liabilities is recommended to fully assess the company’s financial resilience.

IMPROVE BUILDING AND MAINTENANCE LTD - Analysis Report

Company Number: 12933552

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: MEDIUM

Justification: The company is active and compliant with filing deadlines, which is positive. However, the most recent financial year (2022) shows a deterioration in liquidity with net current liabilities of £4,840 compared to net current assets of £2,098 the previous year. This indicates potential short-term cash flow pressure. Additionally, the total assets less current liabilities decreased significantly from £9,929 to £3,833, signaling weakening solvency. The company is micro-sized with minimal share capital and shows limited financial resources.

2. Key Concerns:

• Liquidity deterioration in 2022: Current liabilities increased substantially, resulting in negative working capital that may challenge meeting short-term obligations.
• Decline in net assets and total assets less current liabilities compared to prior years, reflecting a weakening financial position.
• Small scale of operations (only 2 employees) and minimal share capital (£100) suggest limited capacity to absorb financial shocks or expand operations.

3. Positive Indicators:

• The company remains active and up to date with statutory filings, indicating compliance and sound governance.
• Slight growth in fixed assets from £7,831 to £8,673, which may reflect some investment in operational capacity.
• Consistent shareholder funds growth from £2,429 (2020, 2021) to £3,233 (2022) despite liquidity challenges, showing some retained earnings or capital injections.

4. Due Diligence Notes:

• Investigate the nature and timing of the increase in current liabilities in 2022 to understand if this is a one-off issue or ongoing cash flow problem.
• Review the company’s cash flow statements and profit and loss accounts (not filed publicly) to assess profitability and cash generation.
• Confirm details about any outstanding debts, credit terms with suppliers, and payment practices to evaluate operational stability.
• Assess the director’s plans or actions to address liquidity issues and sustain operations.
• Verify the absence of any regulatory or legal actions against the company or its director, given the small scale and concentrated control.