S BUILDING LIMITED

Executive Summary

S BUILDING LIMITED is a very recently incorporated micro-entity showing significant financial weakness with negative net assets and poor liquidity at its first year-end. The company lacks working capital and operating scale, posing a high credit risk. Without immediate financial support or operational improvement, it is unlikely to meet debt obligations or sustain trading.

S BUILDING LIMITED - Analysis Report

Company Number: 14583730

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: DECLINE
   S BUILDING LIMITED exhibits significant financial distress as indicated by net current liabilities of £33,832 and negative net assets of the same amount. The company has no employees and minimal current assets (£2,119) against current liabilities of £35,951, reflecting poor liquidity and negative working capital. Given it was only incorporated in January 2023 and is already reporting such weak financials at its first year-end, the ability to service debt or meet commercial obligations is highly questionable. There is no evidence of profitability or positive cash flow generation, and the company’s financial position suggests a high risk of insolvency without capital injection or operational improvement.

2. Financial Strength
   The balance sheet is weak with net liabilities equal to the full shortfall in working capital. The absence of fixed assets and retained earnings means the company has no tangible buffer or equity cushion. Shareholders’ funds are negative, indicating that liabilities exceed assets, which is a critical weakness in financial strength. The micro-entity status and exemption from audit limit available financial disclosures, but the reported figures clearly show an unstable capital structure.

3. Cash Flow Assessment
   Current assets, primarily cash or equivalents, are very low at £2,119 versus current liabilities of £35,951, indicating poor liquidity and inability to cover short-term obligations. Negative net current assets highlight working capital deficiency. There is no reported employment or operational scale to generate cash inflows, raising concerns about ongoing cash flow sustainability. Without immediate cash injection or operational revenue, the company’s ability to continue trading and meet creditor demands is doubtful.

4. Monitoring Points

• Monitor quarterly cash flow and liquidity position closely to detect any worsening of working capital deficits.
• Watch for changes in current liabilities and whether any debts are restructured or defaulted.
• Review any capital injections or shareholder funding to improve solvency.
• Track operational developments such as commencement of trading activities, revenue generation, or hiring of staff that could improve cash flows.
• Keep updated on director actions and any financial support arrangements.