NSH BUILDING SERVICES LTD

Executive Summary

NSH Building Services Ltd is a recently established micro-entity with a declining financial position, negative net assets, and constrained liquidity. The current financial metrics do not support credit approval due to elevated risk of default and insufficient asset coverage. Close monitoring of future financial performance and cash flow is recommended if reconsidering credit facilities.

NSH BUILDING SERVICES LTD - Analysis Report

Company Number: 14125821

Analysis Date: 2025-07-20 15:57 UTC

1. Credit Opinion: DECLINE
   NSH Building Services Ltd shows a deteriorating financial position with net liabilities of £430 at the latest year-end, down from net assets of £100 previously. The company is newly incorporated (2022) and currently classified as a micro-entity with very limited assets and negative net working capital. The absence of employees and minimal cash balances (£1,148) raise concerns about operational scale and ability to generate cash flow. Without evidence of profitable trading or asset backing, the risk of insolvency or inability to meet debt obligations is elevated. Therefore, credit extension is not advisable at this stage.

2. Financial Strength:
   The balance sheet reveals a weak financial footing. Current liabilities (£1,578) exceed current assets (£1,148), resulting in a negative net working capital of £430. No fixed assets or investments are reported, and shareholders’ funds are negative (£-530), indicating accumulated losses or undercapitalization. The lack of tangible or intangible asset base limits collateral availability. The trend from positive net assets in 2023 to negative in 2024 suggests deteriorating financial health.

3. Cash Flow Assessment:
   Cash on hand is minimal at £1,148 with no reported receivables or inventories, implying limited operational liquidity. Negative net current assets point to potential difficulties in meeting short-term liabilities as they fall due. There is no indication of positive cash flow generation or working capital management. The company’s ability to service debt or finance operations through internal funds appears constrained.

4. Monitoring Points:

• Monitor future annual accounts for improvement in net assets and working capital.
• Track cash flow statements once available to assess operational liquidity trends.
• Observe any increase in turnover or asset base to support creditworthiness.
• Watch for director actions or capital injections that might improve financial stability.
• Review any overdue filings or changes in company status.