MBG BUILDERS LTD

Executive Summary

MBG BUILDERS LTD is a newly formed micro construction company with a modest but positive net asset position and working capital. The company currently demonstrates sufficient short-term liquidity and no debt burden, supporting a cautious credit approval. Continued monitoring of financial performance and growth metrics is essential given the limited operating history.

MBG BUILDERS LTD - Analysis Report

Company Number: 15077298

Analysis Date: 2025-07-29 15:54 UTC

1. Credit Opinion: APPROVE with caution. MBG BUILDERS LTD is a newly incorporated micro private limited company operating in the construction of domestic buildings sector. The company shows a modest net asset base of £491 and positive net current assets, indicating initial financial stability. However, given its very recent incorporation (August 2023) and limited financial history, credit exposure should be conservative, with close monitoring. There is no indication of debt or complex liabilities, which reduces immediate risk.

2. Financial Strength: The balance sheet reflects minimal fixed assets and modest current assets (£3,597) against current liabilities of £2,406, resulting in a positive net working capital of £1,191. Shareholders’ funds amount to £491, showing a small equity base consistent with a micro-entity startup. The absence of long-term liabilities and provisions is positive but also suggests limited operational scale and capital investment to date.

3. Cash Flow Assessment: Current assets are primarily cash or equivalents as no stock or debtors are reported, which suggests reasonable liquidity for short-term obligations. The working capital surplus is small but positive, indicating the company can cover its short-term liabilities. With only two employees, operating overhead is likely low. However, no profit and loss data is available, so cash generation capacity and sustainability cannot be fully assessed yet.

4. Monitoring Points:

• Track future filings for profit and loss accounts to assess operating performance and cash flow generation.
• Monitor growth in current assets and net assets as indicators of business expansion and financial resilience.
• Watch for any increase in liabilities or credit usage that could strain liquidity.
• Review director’s conduct and any changes in ownership or management that could impact governance.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory risk.