JB BUILDERS AND SONS LTD

Executive Summary

JB Builders and Sons Ltd is currently facing high financial risk driven by negative net assets and significant long-term liabilities exceeding current assets. While the company maintains regulatory compliance and stable leadership, its small scale and financial position raise substantial concerns about solvency and liquidity. Further investigation into creditor terms and management plans is recommended to better understand the company’s sustainability prospects.

JB BUILDERS AND SONS LTD - Analysis Report

Company Number: 13917715

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency risks with net liabilities of £26,519 as of the latest accounts (2024-02-28), a decline from positive shareholders’ funds in the previous year. The presence of long-term creditors (£29,977) outweighing current assets is a critical concern. The company is a micro entity with minimal turnover and only two employees, which suggests limited operational scale and resilience.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position indicates financial distress, reducing its ability to meet obligations and posing solvency risk.
• High Long-Term Creditors: Creditors due after more than one year (£29,977) substantially exceed current assets, signalling potential liquidity and refinancing risks.
• Limited Scale and Resources: As a micro-entity with only two employees and minimal current assets (£3,967), the company’s operational stability and capacity to generate cash flow may be fragile.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is up to date with accounts and confirmation statement filings, reflecting good regulatory compliance.
• Experienced Directors with Control: The two directors, who are also significant controllers, have remained consistent since incorporation, potentially providing stable leadership.
• No Auditor Requirement: The company qualifies for the micro-entity regime and exemption from audit, reducing compliance costs.

4. Due Diligence Notes:

• Examine Nature of Long-Term Creditors: Clarify the terms, security, and repayment schedule of the £29,977 long-term liabilities to assess refinancing or default risk.
• Assess Cash Flow and Profitability Trends: Obtain internal management accounts or cash flow forecasts to understand if the negative net assets are a temporary issue or indicative of ongoing losses.
• Review Directors’ Plans: Investigate strategies the directors have for returning the company to a positive net asset position and sustaining operations.
• Confirm Absence of Director Disqualifications or Regulatory Issues: Although none are indicated, verify no adverse director conduct or compliance breaches exist.