Company Number: 14194750

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: LOW
   S&D Builders (SW) Ltd demonstrates a solid solvency position with positive net assets and shareholders’ funds that have more than doubled from £13,390 in 2023 to £27,966 in 2024. The company is current with all statutory filings and there are no indications of financial distress or governance issues.

2. Key Concerns:

• Reliance on long-term liabilities: The company’s current liabilities within one year are £8,358, but amounts falling due after one year have increased to £17,452. The nature and terms of these long-term liabilities should be reviewed to assess repayment risk.
• Limited financial history: Incorporated in mid-2022, the company has a short operational track record, which limits trend analysis and risk prediction.
• Absence of profit and loss details: As a micro-entity, the company has not filed a profit and loss account, restricting insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Strong working capital position: Net current assets increased from £5,592 in 2023 to £12,994 in 2024, indicating improved liquidity.
• Growing asset base: Fixed assets have increased from £18,215 to £33,050, suggesting investment in operational capacity.
• Compliance and governance: The company is active, with up-to-date accounts and confirmation statements filed well within deadlines, and no audit exemptions issues.
• Ownership transparency: The two persons with significant control are documented with clear shareholdings and voting rights, both resident in the UK.

4. Due Diligence Notes:

• Examine the terms and repayment schedules of the £17,452 long-term liabilities to understand any refinancing or repayment risks.
• Request internal management accounts or cash flow statements to assess operational profitability and liquidity beyond balance sheet snapshots.
• Verify the nature of fixed assets to determine if these are productive assets or investments that support business growth.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations not reflected in the filings.
• Review contracts or customer concentration to evaluate sustainability of revenue streams given the company’s short trading history.