PLUMB BUILD SOLUTIONS LTD

Executive Summary

Plumb Build Solutions Ltd is a very small operation with negative working capital and eroding equity over recent years, raising concerns about short-term liquidity and financial resilience. While currently compliant with filings and active, the company’s limited scale and weak balance sheet warrant a cautious, conditional credit approach pending further cash flow verification. Close monitoring of liquidity metrics and operational performance is advised if credit is extended.

PLUMB BUILD SOLUTIONS LTD - Analysis Report

Company Number: 13719228

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Plumb Build Solutions Ltd is a very small, micro-entity operating in the building finishing and plumbing installation sector. The company is active, with no overdue filings, which supports regulatory compliance. However, recurring net current liabilities indicate short-term liquidity pressures, and net assets have declined significantly from £39k in 2021 to about £9k in 2024. The company’s small scale and limited working capital pose a risk to debt servicing capacity. Conditional approval is recommended, subject to confirmation of stable cash flows and possibly a personal guarantee or additional collateral for credit facilities.

2. Financial Strength:
   The balance sheet shows fixed assets of £11,279 and net assets of £8,996 at the latest year end. Net current liabilities are £1,533, indicating negative working capital. The company’s equity has eroded substantially over three years (from £39,278 to £8,996), suggesting retained losses or dividend payments exceeding profits. The capital base is weak for supporting new borrowing and limits buffer against operational shocks. The lack of audit and reliance on micro-entity filing exemptions mean detailed financial scrutiny is limited.

3. Cash Flow Assessment:
   Current assets are minimal (£1,581), with current liabilities nearly double at £3,114. This negative working capital position indicates that short-term obligations exceed readily available liquid assets, raising concerns about the company’s immediate ability to meet creditor demands without additional funding or cash inflows. The consistently small asset base and low employee count (average 2 employees) imply limited operational scale, so cash flow volatility could be high. No direct cash flow statement is available; further cash flow detail should be requested.

4. Monitoring Points:

• Monitor quarterly or biannual management accounts to verify improvement or stability in working capital and cash flow.
• Watch for any director changes or adverse filings that could indicate governance issues.
• Track payment performance on trade creditors and any new credit facilities granted.
• Review any further equity injections or capital restructuring.
• Keep an eye on sector conditions impacting plumbing/building finishing demand, given the company’s narrow market focus.