SG DESIGN AND BUILD (CONSTRUCTION) LTD

Executive Summary

SG DESIGN AND BUILD (CONSTRUCTION) LTD demonstrates strong initial financial health with positive net assets and solid working capital, indicative of good liquidity and solvency in its first year of operation. While the company is in an early growth phase with limited financial history, its compliance and cash position are sound. Moving forward, careful cash flow management and monitoring of profitability will be key to sustaining financial wellness.

SG DESIGN AND BUILD (CONSTRUCTION) LTD - Analysis Report

Company Number: 15003714

Analysis Date: 2025-07-29 13:44 UTC

Financial Health Assessment for SG DESIGN AND BUILD (CONSTRUCTION) LTD

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1. Financial Health Score: B+

Explanation:
As a newly incorporated micro-entity (since July 2023), SG DESIGN AND BUILD (CONSTRUCTION) LTD shows a solid financial footing with positive net assets and strong working capital. The company has healthy liquidity as indicated by a net current asset position of £74,743 and zero overdue filings, which are vital signs of good short-term financial health. However, being in the very early stage of operations, the absence of profit and loss data and limited asset base suggests some caution. This score reflects a generally healthy status but with room to monitor operating performance and growth sustainability.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£823	Very low fixed asset base, typical for a new construction company likely relying on subcontractors or leased equipment.
Current Assets	£114,200	Strong current assets, primarily cash or receivables, indicating good liquidity.
Current Liabilities	£39,457	Short-term obligations are moderate but well covered by current assets.
Net Current Assets	£74,743	Positive working capital showing the company can comfortably cover short-term debts ("healthy cash flow status").
Net Assets (Equity)	£75,568	Positive shareholder funds indicate the company is solvent and has a buffer against losses.
Average Number of Employees	2	Small team size consistent with micro-entity status, enabling tight cost control early on.
Filing Status	Up to date	No overdue accounts or confirmation statements, indicating good compliance and governance.

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3. Diagnosis: What the Financial Data Reveals About Business Health

SG DESIGN AND BUILD (CONSTRUCTION) LTD is in the early "growth initiation" phase, as reflected by its incorporation in mid-2023 and the first set of micro-entity accounts filed for the year ending July 2024. The company displays symptoms of good financial hygiene:

• Healthy liquidity: The large positive net current assets suggest the company has sufficient cash or liquid assets to meet near-term obligations without distress.
• Solvency: Positive net assets and shareholder funds show no immediate risk of insolvency.
• Conservative asset base: The low fixed asset figure suggests the firm is not heavily invested in property or equipment, which may reduce financial risk but could limit operational capacity unless balanced by subcontracting or project partnerships.
• Small but stable workforce: The company has 2 employees, indicating lean operations which can be advantageous for controlling overheads during early growth.

There are no warnings signs such as negative working capital, overdue filings, or director disqualifications. However, due to the company's infancy, there is limited historical financial performance data to assess profitability, cash flow trends, or debt servicing ability over time—these will be critical to monitor moving forward.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Develop Detailed Cash Flow Forecasts: To ensure "healthy cash flow," create rolling cash flow projections to anticipate periods of cash surplus or shortage, especially important in the construction sector with variable project timing.
• Build Fixed Asset Base Strategically: Evaluate the need for investing in essential tools or equipment to enhance operational capacity, balancing capital expenditure with liquidity.
• Monitor Profitability and Margins Closely: As revenue starts to build, track gross and net margins carefully to detect any "symptoms of distress" such as margin erosion or cost overruns.
• Maintain Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Consider Growth Financing Options: If expansion is planned, explore financing routes early (e.g., overdrafts, small business loans) to support working capital needs without endangering liquidity.
• Strengthen Governance and Reporting: Even as a micro-entity, consider implementing basic financial controls and reporting frameworks to support informed decision-making.

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