WILTSHIRE BUILD SOLUTIONS LTD

Executive Summary

Wiltshire Build Solutions Ltd exhibits ongoing negative equity and diminishing working capital despite positive cash holdings, indicating medium solvency and liquidity risk. The company's compliance and cash position provide some reassurance, but limited operational scale and financial losses warrant further investigation before investment. Detailed profit and loss data and debt terms should be reviewed to confirm sustainability.

WILTSHIRE BUILD SOLUTIONS LTD - Analysis Report

Company Number: 12422149

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: MEDIUM

This rating is based on the company's persistent negative net assets indicating accumulated losses, modest positive net current assets suggesting limited short-term liquidity, and its status as a small private limited company operating in a competitive construction sector. While the company remains active and compliant with filings, financial indicators suggest potential solvency pressure.

2. Key Concerns:

• Negative Shareholders’ Funds: The company has reported net liabilities for several years, with shareholders’ funds declining from a positive £1,543 in 2020 to negative £3,715 in 2025. This trend signals accumulated losses eroding equity and possible solvency risks.

• Thin Working Capital Buffer: Although net current assets remain positive, the amount dropped significantly to £2,325 in 2025 from £9,247 in 2024, indicating a narrowing margin to cover short-term liabilities, potentially leading to liquidity stress.

• Dependence on Single Director/Employee: The company reports an average of one employee (likely the director), which may limit operational scalability and resilience. This can affect sustainability if the director is unable to perform or leaves.

3. Positive Indicators:

• Current Filings Up to Date: Both accounts and confirmation statements are filed on time, demonstrating compliance with statutory requirements and reducing regulatory risk.

• Positive Cash Position: Cash balances increased to £43,216 in 2025, exceeding current liabilities of £40,891, which supports short-term liquidity and operational continuity.

• Reduction in Long-Term Debt: Creditors due after more than one year decreased from £23,584 in 2024 to £12,171 in 2025, indicating some deleveraging or repayment of longer-term obligations.

4. Due Diligence Notes:

• Review Profit & Loss Trends: The absence of detailed income statement data limits understanding of profitability drivers, margins, and cash flow generation. Request full P&L and cash flow statements to assess operational performance.

• Evaluate Debt Terms and Covenants: Assess the nature, interest rates, and repayment schedules of bank loans and hire purchase contracts to understand refinancing or default risk.

• Examine Director's Role and Succession Plans: Given the single director and employee status, investigate any plans for business continuity, operational support, and key person risk mitigation.

• Confirm Absence of Related Party Transactions: Verify that transactions with the director or related parties are at arm’s length and do not obscure underlying financial health.

• Assess Asset Valuation and Depreciation Policies: The tangible fixed assets have been significantly depreciated; confirm that valuation and depreciation methods are appropriate and not masking impairment.

Executive Summary:
Wiltshire Build Solutions Ltd maintains compliance with regulatory filings and holds a positive cash balance supporting near-term liquidity. However, persistent negative net assets and a shrinking working capital buffer raise concerns about solvency and financial resilience. Further due diligence on profitability, debt obligations, and operational sustainability is advised to fully assess investment risk.