S&B DESIGN CONSTRUCTION LIMITED

Executive Summary

S&B Design Construction Limited presents a mixed financial profile with positive equity growth and compliance history but exhibits unusual creditor accounting and limited liquidity indicators. The company's small scale and minimal capital base introduce operational vulnerability, warranting further investigation into financial classifications and cash flow robustness before investment consideration.

S&B DESIGN CONSTRUCTION LIMITED - Analysis Report

Company Number: 12780291

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: MEDIUM

Justification: S&B Design Construction Limited has maintained positive net assets and net current assets as of the most recent financial year end (June 2024), indicating solvency at a balance sheet level. However, unusual creditor balances (negative creditor amounts) and fluctuations in current liabilities raise some questions about financial reporting clarity and cash flow management. The company is relatively young (incorporated in 2020) with modest share capital and limited tangible fixed assets, suggesting limited operational scale and potential vulnerability to external shocks.

2. Key Concerns:

• Creditor Balances and Presentation: The accounts show negative figures under "Other creditors" and current liabilities for 2024 (£-8,141 and £-1,500 respectively), which is atypical and suggests potential classification or accounting irregularities that require clarification.
• Limited Cash and Working Capital: Cash on hand decreased markedly from £4,883 in 2023 to £1,315 in 2024 while current liabilities have been presented as negative, complicating assessment of liquidity. The reported net current assets improved to £2,824 (2024) from £1,545 (2023), but the underlying movements and classification inconsistencies warrant further review.
• Small Scale and Limited Capital Base: With only £100 share capital and net assets of £4,276, the company's financial buffer is minimal. Given the construction sector's capital intensity and cash flow demands, this could pose operational risks.

3. Positive Indicators:

• Compliance and Timely Filings: The company is active, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Positive and Improving Net Assets: Despite volatility, shareholder funds have increased steadily from £147 in 2020 to £4,276 in 2024, suggesting retained earnings growth.
• Stable Workforce: The company employed an average of 3 persons consistently over recent years, indicating operational consistency.

4. Due Diligence Notes:

• Request detailed explanation and reconciliation of creditor balances, particularly the negative amounts reported.
• Review cash flow statements and aged creditor/debtor analyses to assess liquidity trends and working capital management.
• Investigate the company’s contract pipeline, business model sustainability, and client concentration given the small scale.
• Confirm the director’s background and any related party transactions or guarantees, especially given sole directorship and modest capital.
• Verify accounting policies and any potential impact of small company exemptions on financial transparency.