Company Number: 14974405

Analysis Date: 2025-07-20 12:12 UTC

Financial Health Assessment for RAZBUILD LIMITED

---

1. Financial Health Score: D

Explanation:
The company exhibits significant signs of financial distress, primarily due to negative net current assets and net liabilities position as at the latest financial year end. While still active and compliant with filings, the financial "vital signs" indicate urgent need for remedial action to restore healthy working capital and solvency.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,091	Very low cash and receivables; insufficient liquidity
Current Liabilities	15,035	Short-term debts significantly exceed assets
Net Current Assets (Liabilities)	-13,944	Negative working capital, immediate pressure on operations
Total Net Assets (Liabilities)	-13,944	Company is insolvent on a balance sheet basis
Shareholders’ Funds	-13,944	Equity wiped out; accumulated losses exceed capital
Number of Employees	2	Very small team consistent with micro company status

Interpretation:

• The "heart" of the company—liquidity and working capital—is currently failing. Negative net current assets signal the inability to cover short-term obligations with available assets, a symptom of financial distress akin to "organ failure" in a patient.
• Negative net assets indicate insolvency, meaning liabilities surpass total assets—a critical warning sign of poor financial health.
• Very low current assets imply limited cash or easily convertible resources to meet debts, risking operational disruption.
• Small employee base reflects a micro-sized operation with limited scale to absorb financial shocks.

---

3. Diagnosis

RAZBUILD LIMITED is in a precarious financial condition. Despite being newly incorporated in July 2023 and compliant with filing deadlines, the company’s balance sheet shows severe "symptoms of distress": negative net current assets and overall net liabilities of £13,944. This is comparable to a patient showing signs of systemic failure where liabilities overwhelm the available resources.

The company's negative equity position indicates it has been operating at a loss or has accumulated debts exceeding its capital base since inception. The construction industry focus (domestic and commercial buildings) can be capital-intensive and cash-flow sensitive, making this financial setup risky without immediate corrective measures.

The director, who also is the majority shareholder, carries full control, which can facilitate swift decision-making but also concentrates risk.

---

4. Recommendations

To stabilize and improve financial wellness, the company should consider the following actions:

1. Immediate Cash Flow Management:

   • Conduct a detailed cash flow forecast to identify shortfalls.
   • Prioritize collections of receivables and negotiate extended payment terms with creditors to ease liquidity pressure.
   • If possible, inject additional equity or secure short-term financing to cover working capital gaps.

2. Cost Control and Operational Efficiency:

   • Review and reduce overheads and variable costs where feasible.
   • Evaluate project profitability rigorously before commitment to prevent further losses.

3. Financial Restructuring:

   • Explore restructuring debts to improve maturity profiles and reduce immediate liabilities.
   • Consider formal financial advice on insolvency prevention to avoid escalation to administration or liquidation.

4. Strategic Review:

   • Assess business model viability given current financial constraints.
   • Explore partnerships, new contracts, or diversification to increase revenue base.

5. Governance and Monitoring:

   • Maintain rigorous financial monitoring to detect and address future symptoms early.
   • Engage with professional advisors for ongoing financial health checks.

---