LIVER BUILD LTD

Executive Summary

LIVER BUILD LTD is financially stable for a micro entity in its startup phase, showing healthy working capital and positive net assets. The company’s modest size and recent incorporation mean cautious management of cash flow and liabilities is critical to avoid liquidity risks. Strengthening reserves and expanding operational capacity will support sustainable growth.

LIVER BUILD LTD - Analysis Report

Company Number: 15017801

Analysis Date: 2025-07-20 18:05 UTC

Financial Health Assessment for LIVER BUILD LTD

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1. Financial Health Score: B-

Explanation:
LIVER BUILD LTD, a newly incorporated micro entity in the construction sector, shows a stable but nascent financial position. The company has positive net current assets and net assets indicating initial financial stability, but given the company’s very recent formation and limited financial history, the overall score reflects cautious optimism. There are no alarming liquidity or solvency issues, but the low asset base and limited operational scale temper the rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	7,846	Cash and receivables sufficient for short-term needs.
Current Liabilities	3,208	Debts due within a year are manageable relative to assets.
Net Current Assets	4,638	Positive working capital—healthy short-term liquidity.
Net Assets (Equity)	3,614	Positive shareholder equity indicates solvency.
Accruals and Deferred Income	1,024	Indicates some income received in advance or expenses accrued; manageable.
Average Number of Employees	2	Small workforce consistent with micro entity status.

Interpretation:

• The company has a "healthy cash flow" equivalent in its positive net current assets, suggesting it can cover short-term obligations without distress.
• Positive net assets and shareholders’ funds indicate the company is solvent, meaning it owns more than it owes.
• Being a micro entity, the scale is small, but the foundation is sound for a startup phase.
• No audit requirement reflects compliance with regulatory thresholds and reduced administrative burden.

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3. Diagnosis

LIVER BUILD LTD appears to be in the initial growth phase typical for a recently incorporated micro company. The financial "vital signs" show no symptoms of distress such as negative working capital or insolvency. The balance sheet is modest but stable, suggesting prudent financial management and a solid foundation.

However, the limited financial history and scale mean the company is still vulnerable to external shocks or cash flow interruptions typical in the construction industry. The current asset base, while positive, is small, so the company must maintain good cash flow discipline and monitor liabilities closely to avoid liquidity stress.

The directors hold significant control (each owning 25-50%), indicating centralized governance, which can be advantageous for swift decision-making but should be balanced with adequate oversight as the company grows.

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4. Recommendations

• Cash Flow Management: Maintain rigorous monitoring of cash inflows and outflows. Given the small buffer in current assets, any delay in receivables or unforeseen expenses could cause liquidity "symptoms" such as cash shortages.
• Build Reserves: Aim to gradually increase working capital and net assets by retaining profits or injecting additional equity to strengthen financial resilience.
• Diversify Income Streams: As a construction company, consider expanding client base or service offerings to reduce reliance on a few contracts, mitigating revenue volatility risks.
• Financial Planning: Develop a detailed budget and cash flow forecast to anticipate funding needs, especially during periods of growth or increased capital expenditure.
• Governance: Although currently centralized, consider establishing internal controls or advisory support to enhance decision-making and risk management as the company matures.
• Compliance: Continue meeting all filing deadlines to avoid penalties and maintain good standing with Companies House.

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