SDL SURVEY AND BUILD LTD

Executive Summary

SDL Survey and Build Ltd has shown a marked improvement from prior year financial distress to a positive net asset position, reflecting better liquidity and reduced liabilities. While the company remains small and reliant on related party transactions, it currently demonstrates sufficient working capital to meet obligations. Credit is recommended on a conditional basis with tight monitoring of related-party exposures and cash flows due to the company’s early stage and limited trading history.

SDL SURVEY AND BUILD LTD - Analysis Report

Company Number: 13623124

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SDL Survey and Build Ltd has demonstrated a significant turnaround in financial position from the prior year, improving from negative net current assets and shareholders’ funds to a positive balance sheet position. However, the absolute scale of the business remains very small, with minimal tangible assets and modest working capital. The company is relatively new (incorporated in 2021) and operates in the development of building projects sector, which can be cyclical and capital-intensive. The presence of related party balances (debtor owed by a director-controlled company) poses a risk of limited external commercial validation of receivables. Given these factors, credit can be extended but with conditions such as limited exposure, regular monitoring, and clear transparency on related party transactions and cash flow.

2. Financial Strength:

• The balance sheet as of 30/09/2023 shows total current assets of £4,738 with cash of £1,613 and debtors of £3,125.
• Current liabilities have reduced significantly from £4,514 in 2022 to £2,324 in 2023, improving net current assets to £2,414 from a negative £1,712 previously.
• Shareholders’ funds improved from -£1,714 to positive £2,414, indicating restoration of equity and reserves.
• The company has no fixed assets reported, suggesting it is asset-light or capital expenditure is minimal.
• Related party debts (£2,201) represent a large portion of debtors, which could impact liquidity if not collectible.
• The company remains micro in size with minimal share capital (£2).

3. Cash Flow Assessment:

• Cash on hand is low at £1,613 but improved from £2,400 last year.
• The increase in debtors, largely related party, means cash conversion risk exists.
• Current liabilities have dropped, easing short-term pressure.
• Positive net working capital signals ability to meet short-term obligations as of the latest accounts.
• However, the absence of a profit and loss statement limits insight into operational cash flow and profitability trends.
• The company employs only 1 person, indicating low overheads but limited scale.

4. Monitoring Points:

• Closely monitor related party balances for collectability and any changes in inter-company financing.
• Review subsequent cash flow statements and profit & loss accounts when available to assess operational performance and cash generation.
• Watch working capital trends for potential liquidity stress, especially if trade debtors increase without cash inflow.
• Track any delays or issues with filing statutory accounts or confirmation statements.
• Evaluate any significant contracts or commitments in the building development sector that could affect cash flow volatility.