Financial Health Assessment: RAMVEKE BUILDERS LIMITED

🏥 Financial Health Score: F

This patient is in critical condition. The company is insolvent, deteriorating rapidly, and showing signs of being abandoned by its directors. The "Proposal to Strike Off" status is the corporate equivalent of entering end-of-life care.

1. Key Vital Signs

Additional Vital Signs:

• Employees: 1 (likely the director only)
• Confirmation Statement: OVERDUE ⚠️
• Company Status: Active – Proposal to Strike Off
• Accounts filed: Micro-entity (minimal disclosure)

2. Diagnosis

What the Financial Data Reveals About Business Health

This is a chronically insolvent business in terminal decline. The financial vital signs paint a clear picture of a company that has been unwell for several years and is now in critical condition.

The Deterioration Timeline – A Chronic Condition Worsening:

The pattern is unmistakable: the company crossed into insolvency in 2022 and has been haemorrhaging financial health ever since. The net liability position has worsened by over 2,400% since the company first became insolvent.

Key Symptoms of Distress:

1. Chronic Insolvency (Liabilities > Assets) The company cannot pay its debts from its assets. With £50,959 in liabilities against only £16,930 in assets, there is a £34,029 shortfall. This is the financial equivalent of a patient whose blood pressure has dropped to dangerous levels – the business cannot sustain itself.

2. Rapidly Growing Creditor Burden Creditors due within one year jumped from £35,729 to £50,959 – a 42.6% increase in just 12 months. This suggests the company is accumulating unpaid debts, likely to trade suppliers, HMRC, or the director themselves. This is a compounding problem that accelerates deterioration.

3. No Working Capital Net current liabilities of -£34,374 mean the company has absolutely no buffer to meet day-to-day obligations. This is like having no immune system – even minor financial demands cannot be absorbed.

4. Negligible Fixed Assets With only £345 in fixed assets (down from £460), the business has effectively no operational infrastructure. This is consistent with a business that has either run down its equipment or never had meaningful assets.

5. Director Abandonment Indicators The "Proposal to Strike Off" status is deeply significant. This means an application has been made to remove the company from the Companies House register – the corporate equivalent of signing a "Do Not Resuscitate" order. Combined with the overdue Confirmation Statement, this suggests the director is no longer maintaining proper governance.

3. Prognosis

Future Financial Outlook: Terminal

Without immediate and significant intervention, this company will not recover. The trajectory is clear and accelerating:

• Insolvency is deepening at approximately £15,989 per year (the increase in net liabilities from 2024 to 2025)
• The strike-off proposal indicates the director has likely decided to close the business rather than attempt recovery
• Overdue compliance filings suggest governance has effectively ceased
• No visible revenue or profitability data (micro-entity accounts provide minimal disclosure) makes external rescue unlikely

What the Strike-Off Means:

A proposal to strike off means the director has applied to have the company dissolved. This can happen when: - The director believes the company is no longer needed - The director wishes to avoid formal insolvency procedures - The company has ceased trading

However, striking off can be blocked by creditors who are owed money. Given £50,959 in liabilities, any creditor could object and force the company into formal insolvency instead.

4. Recommendations

If You Are a Creditor:

1. Act immediately – Register a objection to the strike-off with Companies House if you are owed money
2. Consider formal recovery action – The director may be personally liable if they continued trading while insolvent (wrongful trading)
3. Seek professional advice on pursuing the director personally if there are grounds for misfeasance claims

If You Are the Director:

1. Cease trading immediately if not already done – Continuing to trade while insolvent creates personal liability risk
2. Do NOT apply to strike off while creditors are owed money – this is improper and can be challenged
3. Seek professional insolvency advice urgently – A formal liquidation may be more appropriate than strike-off given the level of liabilities
4. Ensure all tax obligations are filed – HMRC is likely a significant creditor and can object to strike-off
5. Be aware of wrongful trading provisions under the Insolvency Act 1986 – continuing to incur credit when there was no reasonable prospect of avoiding insolvency can result in personal liability

If You Are Considering Doing Business With This Company:

1. Do not extend credit – The company is insolvent and unlikely to pay
2. Demand payment upfront for any work
3. Be aware the company is likely in the process of being dissolved

⚠️ Critical Red Flags Summary