NEO DESIGN & BUILD LIMITED

Executive Summary

NEO DESIGN & BUILD LIMITED currently maintains a stable but fragile financial condition with positive working capital and minimal equity. The company shows early signs of financial stress due to low net assets and emerging long-term liabilities. Strengthening capital reserves and managing liabilities will be crucial to improving financial resilience and ensuring long-term viability.

NEO DESIGN & BUILD LIMITED - Analysis Report

Company Number: 13101453

Analysis Date: 2025-07-20 11:51 UTC

Financial Health Assessment of NEO DESIGN & BUILD LIMITED

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1. Financial Health Score: C

Explanation:
NEO DESIGN & BUILD LIMITED shows signs of financial survival but with some stress signals. The company maintains a positive net asset position, indicating it holds more assets than liabilities, but the margin is very slim. The recent improvement in net current assets is encouraging, yet the persistent low equity and reliance on short-term assets spotlight potential vulnerability. Overall, the company is stable but not robust, thus earning a "C" grade reflecting moderate financial health with areas requiring monitoring and improvement.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	0	No investment in long-term assets; typical for micro entity but limits asset base.
Current Assets	18,190	Represents cash, receivables; a healthy pool for short-term obligations.
Current Liabilities	12,138	Debts due within one year; manageable but significant relative to assets.
Net Current Assets	6,052	Positive working capital, showing the company can cover short-term debts.
Creditors due after 1 year	6,000	Long-term liabilities have appeared in 2023, increasing financial obligations.
Net Assets (Equity)	152	Very low shareholder equity, indicating limited buffer against losses.
Share Capital	100	Minimal paid-in capital, typical for a micro company.
Employee Count	0	No employees; may indicate outsourcing or reliance on contractors.

Interpretation of Vital Signs:
The company’s current assets exceed current liabilities, which is a vital sign of short-term liquidity health—akin to a patient having a steady pulse and stable vital signs. However, the very low net assets and the emergence of creditors due after more than one year (long-term liabilities) introduce some stress or "symptoms" of financial strain. The lack of fixed assets further suggests the company operates with minimal capital investment, possibly limiting growth potential or security.

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3. Diagnosis

NEO DESIGN & BUILD LIMITED is currently financially solvent but exhibits signs of tight liquidity and limited capital reserves. The positive net current assets indicate the company has a "healthy cash flow" rhythm sufficient to meet immediate obligations. However, the thin equity base and newly reported long-term liabilities suggest an emerging "symptom of distress"—the company has limited financial cushioning to absorb shocks or unexpected expenses.

The absence of fixed assets and employees suggests a lean operational model, potentially relying on subcontracted work or project-based engagements typical in development of building projects. While this keeps overhead low, it may also limit operational stability and scalability.

The gradual increase in net current assets from £36 (2022) to £6,052 (2023) is a positive trend, indicating some improvement in working capital management. However, the company must be cautious as the net assets remain very low (£152), leaving little margin for error.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial health "immune system," the following actions are advised:

• Strengthen Equity Base: Consider increasing share capital or retaining earnings to build shareholder funds, which act as a buffer against financial shocks.
• Manage Long-Term Liabilities: Address the £6,000 creditor due after more than one year by negotiating terms or planning repayment schedules to avoid future liquidity crunches.
• Build Fixed Assets or Investments: Explore opportunities to acquire or invest in fixed assets that can support business growth or provide collateral for financing.
• Enhance Cash Flow Monitoring: Maintain close oversight on receivables and payables to sustain positive net current assets and avoid liquidity "symptoms" such as delayed payments.
• Operational Review: Evaluate business model sustainability without employees and fixed assets to ensure consistent delivery and capacity to scale.
• Risk Contingency Planning: Develop financial contingency plans to prepare for market fluctuations or sudden financial demands, given the low equity cushion.

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