SHA BUILDING SERVICES LTD

Executive Summary

SHA Building Services Ltd is currently financially distressed with increasing liabilities and negative net assets, indicating poor creditworthiness. The company’s liquidity is constrained with negative working capital and very limited cash resources. Given these factors, credit approval is not recommended without significant improvement in financial position or operational scale.

SHA BUILDING SERVICES LTD - Analysis Report

Company Number: 13592224

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: DECLINE
   SHA Building Services Ltd shows weakening financial health with increasing net current liabilities and negative net assets over the last two years. The company’s net current liabilities worsened from £161.6k (FY 2024) to £280.2k (FY 2025), indicating growing short-term liquidity stress. Negative shareholders’ funds (net liabilities of £8,085 in FY 2025) point to insolvency risks. The absence of employees and minimal cash balances raise concerns regarding operational viability and ability to generate cash flow to meet debt obligations. Without clear evidence of turnaround strategy or external capital injection, credit approval is not advisable.

2. Financial Strength:
   The balance sheet shows fixed assets increasing from £157.8k to £272.9k, but this is outweighed by current liabilities rising sharply to £674.6k. Net current liabilities and overall net liabilities indicate the company is over-indebted with insufficient working capital. The micro-entity status limits detailed financial disclosure, but the trend of increasing liabilities and negative equity signals poor financial strength and elevated risk of default.

3. Cash Flow Assessment:
   The company has negligible cash on hand (£51 as per previous filings, current cash not separately disclosed but likely low), and net current liabilities are significant, indicating negative working capital. No employees suggest minimal operating scale or revenues, and no clear evidence of positive cash inflows. This points to liquidity constraints and weak cash flow generation capacity, impairing the company’s ability to service debt or meet short-term obligations.

4. Monitoring Points:

• Changes in net current assets and liabilities to detect improvement or further deterioration.
• Cash balances and working capital trends to assess liquidity.
• Evidence of new financing or capital injections to strengthen equity.
• Any operational developments or increase in employees indicating business ramp-up.
• Director or ownership changes that may impact governance and financial strategy.