S B BUILD AND SCAPE LTD

Executive Summary

S B BUILD AND SCAPE LTD shows clear signs of financial distress with negative equity and working capital deficits despite healthy cash reserves. The company must urgently improve liquidity management and address rising liabilities to avoid further deterioration. With targeted operational adjustments and potential capital support, the company can stabilize its financial health and improve future outlook.

S B BUILD AND SCAPE LTD - Analysis Report

Company Number: 14256802

Analysis Date: 2025-07-20 16:46 UTC

Financial Health Assessment of S B BUILD AND SCAPE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with negative net assets and working capital deficits in the latest financial year. While it is not insolvent, the deteriorating liquidity and equity position lower the financial health grade significantly.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	4,476	6,713	Decline indicates asset depreciation or disposal
Current Assets (Cash)	27,473	19,166	Healthy cash increase, positive liquidity sign
Current Liabilities	30,082	18,474	Sharp increase, indicates rising short-term debts
Net Current Assets	-2,609	692	Negative working capital signals liquidity issues
Net Assets (Equity)	-3,059	331	Negative equity shows accumulated losses or high liabilities
Shareholders Funds	-3,159	331	Mirrors net assets; negative funds is a red flag
Average Employees	2	3	Small workforce, typical of micro/small business

Vital Signs Interpretation:

• Negative net current assets (working capital deficit) indicate the company may struggle to meet its short-term obligations without additional financing or cash inflows.
• Negative net assets suggest that total liabilities exceed total assets, a symptom of financial distress or accumulated losses.
• The increase in cash is a positive sign, potentially from recent funding or improved collections.
• The rise in current liabilities, especially taxation and social security (noted in notes), requires close monitoring as it could indicate cash flow timing issues or tax arrears.
• The drop in fixed assets reflects depreciation or disposals, which may affect operational capacity if assets are critical.

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3. Diagnosis: Financial Condition Overview

S B BUILD AND SCAPE LTD presents symptoms of financial strain despite being active and compliant with filing deadlines. The company’s working capital deficit and negative equity are concerning “symptoms” indicating possible liquidity stress and erosion of the financial buffer. While the cash balance has grown, the company’s increasing current liabilities, including sizeable tax and social security obligations, hint at potential cash flow timing mismatches or operational challenges.

The negative shareholders’ funds reflect that the company has absorbed losses or taken on liabilities that outweigh its assets. This “chronic condition” suggests that without corrective measures, the company risks further deterioration that could lead to insolvency if unresolved.

The company operates in the landscape service industry (SIC 81300), which typically requires equipment and seasonal cash flow management, making liquidity crucial. The small employee base fits the micro/small company profile but limits operational scalability.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Working Capital Management:
  Assess receivables and payables cycles to accelerate cash inflows and negotiate better payment terms with suppliers to ease short-term pressure.

• Address Tax and Social Security Payables:
  Engage with HMRC to arrange payment plans if liabilities are overdue or forecasted to be challenging, to avoid penalties and additional interest.

• Enhance Cash Flow Forecasting:
  Implement rigorous cash flow forecasting to anticipate liquidity gaps and plan financing or operational adjustments proactively.

• Evaluate Cost Structure and Asset Utilization:
  Review operational costs and asset usage to identify inefficiencies, especially given the decline in fixed assets and reduction in headcount.

• Consider Equity Injection or Debt Restructuring:
  Explore options for fresh capital injection, whether through shareholders or external investors, to restore positive net assets and improve solvency ratios.

• Monitor Financial Performance Closely:
  Frequent financial reviews and early warning indicators should be established to respond quickly to worsening conditions.

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