SURVEY AND BUILD TELECOMS LTD

Executive Summary

Survey and Build Telecoms Ltd is a micro private company showing a fragile financial position with negative net assets and limited liquidity. The company’s ability to service debt is questionable given its net liability position and increasing creditors. Credit facilities should be declined at this stage pending significant financial improvement or additional guarantees.

SURVEY AND BUILD TELECOMS LTD - Analysis Report

Company Number: 14120216

Analysis Date: 2025-07-29 17:15 UTC

1. Credit Opinion: DECLINE

Survey and Build Telecoms Ltd exhibits significant financial weakness with persistent net liabilities and negative shareholders’ funds. The company is a micro-entity with minimal assets and has deteriorated from a net liability position of £5,968 in 2023 to £11,639 in 2024. Current liabilities exceed current assets, and the company relies heavily on long-term creditors amounting to £37,666. The lack of positive net assets and absence of an audit increase the risk profile, indicating insufficient capacity to meet debt obligations or absorb financial shocks. Given the early stage of the company and these financial strains, approval of credit facilities is not recommended without substantial improvement or additional security.

2. Financial Strength:

The balance sheet shows fixed assets reduced slightly from £11,844 to £9,147, and current assets sharply declined from £2,861 to £778, while current liabilities remain significant. Prepayments and accrued income increased from £8,580 to £16,402, which may reflect timing differences but do not improve liquidity. Net current assets are positive at £17,180, but this figure is offset by creditors due after one year (£37,666), resulting in a net liability position. The negative shareholders' funds reflect accumulated losses or possibly initial shareholder funding deficits. Overall, the financial position is weak with poor equity base and limited tangible asset cover.

3. Cash Flow Assessment:

Liquidity appears constrained given the low level of current assets (£778) against current liabilities (£37,666). The working capital position is supported by prepayments/accrued income, which may not be readily convertible to cash. The company employs only one person, minimizing payroll expenses, but the negative net assets and increasing creditors suggest operating cash flows are insufficient to cover obligations. Without detailed cash flow statements, the trend points to tight short-term liquidity and a reliance on external financing or shareholder support.

4. Monitoring Points:

• Net liabilities and shareholders’ funds should be closely monitored for signs of improvement or further deterioration.
• Working capital trends, especially current assets versus current liabilities and accrued income realizability.
• Cash flow from operations to assess the company’s ability to generate internal funds.
• Any changes in creditor terms or additional funding from shareholders or lenders.
• Director conduct and stability given the concentration of control in two individuals.
• Timely filing of accounts and compliance to avoid penalties or regulatory concerns.