S&F BATHROOMS LIMITED

Executive Summary

S&F Bathrooms Limited is an active private company operating in plumbing and HVAC installation but shows signs of financial distress with negative net assets and ongoing working capital deficits. While regulatory filings are current and governance appears straightforward, liquidity is constrained and the company depends on director loans. Investors should approach with caution and seek further clarity on cash flow and operational viability.

S&F BATHROOMS LIMITED - Analysis Report

Company Number: 14191971

Analysis Date: 2025-07-19 12:57 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and shareholders’ funds over multiple years, indicating persistent losses and erosion of equity. Current liabilities exceed current assets each year, reflecting working capital deficits and potential liquidity constraints. The very limited cash balance and reliance on director loans further increase solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Net liabilities of £511 at 2024 year-end, worsening from £941 in prior years, suggest ongoing losses and undercapitalization.
• Working Capital Deficit: Net current liabilities of £511 for 2024 and £941 for 2023 indicate the company may struggle to meet short-term obligations as they fall due.
• Reliance on Director Loan and Low Cash: The director loan account (£2,538 debtor) and minimal cash (£968) point to dependence on insider funding and limited liquidity cushion to cover operational needs.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance discipline.
• Single Director and PSC Alignment: The sole director also controls 75-100% of shares and voting rights, simplifying decision-making and control.
• Operating in a Defined Niche: SIC code 43220 (Plumbing, heat and air-conditioning installation) suggests a focused trade activity which may support specialized market positioning.

4. Due Diligence Notes:

• Investigate the company’s cash flow forecasts and plans to address the persistent working capital deficits and negative equity.
• Review the terms and security related to director loan advances, repayment plans, and any potential impact on creditor rights.
• Assess the underlying cause of losses and whether the company has a viable business model or restructuring plan to return to profitability.
• Confirm the company’s customer base, contract pipeline, and revenue recognition practices for sustainability of operations.
• Verify absence of any contingent liabilities or regulatory issues beyond the financial statements.