CompaniesInTheUK

A. M. BELL (PROPERTIES) LIMITED

Company number 01406661 ·

Active

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Investment Risk Analysis: A.M. Bell (Properties) Limited

1. Risk Rating: MEDIUM

The company presents a fundamentally sound balance sheet with net assets of £1.3M and minimal long-term debt relative to asset values. However, the dramatic contraction in working capital to near-zero levels, combined with significant provisions and a group structure requiring further understanding, warrants a medium risk classification rather than low.

2. Key Concerns

Concern 1: Critically Thin Working Capital

Net current assets collapsed from £136,635 (2024) to just £458 (2025). Current assets of £80,526 barely cover current liabilities of £80,068, yielding a current ratio of approximately 1.01:1. For a property company with potential maintenance obligations and cyclical rental income, this provides virtually no buffer against operational disruption or unexpected expenditure.

Concern 2: Significant and Growing Provisions

Provisions for liabilities increased substantially from £120,690 to £205,232 — a rise of £84,542 (70%). This now represents the second largest liability on the balance sheet. The filed accounts do not disclose the nature of these provisions, which could relate to deferred tax on property revaluations, dilapidations, or other obligations. The opacity here is concerning given the magnitude relative to net assets.

Concern 3: Group Structure and Related Party Dynamics

The company is controlled by Am Bell Industrial Properties Limited (75%+ ownership and voting rights). The 2024 balance sheet showed £357,000 owed by group undertakings — the single largest current asset — which has been eliminated in 2025. This inter-company settlement appears to be the primary driver of the working capital contraction. The dependence on group cash flows and the terms of inter-company arrangements require scrutiny, as does the question of whether the group undertaking debt was repaid on arm's length terms or forgiven.

3. Positive Indicators

  • Strong Net Asset Position: Net assets of £1,302,014 represent a 5.1% increase year-on-year, with consistent growth from £913k (2014) to £1.3M (2025). The asset base is predominantly investment property, providing tangible security.

  • Conservative Leverage: Total liabilities of £328,620 against total assets of £1,630,634 yields a debt-to-asset ratio of approximately 20%. Secured debts total only £58,372, with the bank loan (£9,154) carrying a fixed and floating charge — relatively modest secured obligations.

  • Regulatory Compliance: The company has maintained consistent filing history with no overdue filings. Accounts are filed under the small companies regime with appropriate audit exemptions claimed. The company has operated since 1978, demonstrating long-term viability.

  • Improving Cash Position: Cash has grown from £259 (2014) to £70,364 (2025), suggesting the business generates operational cash flow rather than relying on asset disposals.

  • Investment Property Appreciation: The property portfolio was revalued from £1,218,378 to £1,500,000, reflecting market appreciation. Historical cost was only £278,545, indicating substantial embedded value.

4. Due Diligence Notes

Item Investigation Required
Provisions (£205,232) Determine the nature and expected timing of these provisions. If primarily deferred tax on revaluation gains, this is standard. If relating to operational liabilities (dilapidations, litigation), this changes the risk profile significantly.
Inter-company Settlement Understand the terms on which the £357k group undertaking debtor was cleared. Was this repaid in cash, offset against other group liabilities, or written off? The impact on working capital is stark.
Investment Property Valuation The 2025 revaluation of £462,499 gain was "agreed by the directors" rather than independently valued. Assess whether this is supported by market evidence and the basis of the 2012 and 1988 valuations still included in the cost breakdown.
PSC Statement The PSC register includes a "Persons with significant control statement" alongside the corporate PSC. Clarify whether there are additional individuals with significant control not yet identified.
Hire Purchase Commitments Motor vehicles under HP total £49,218. Understand the remaining term and payment profile, particularly as depreciation suggests these assets are relatively new.
Rental Income Sustainability The accounts are filleted (no P&L), so turnover and profitability metrics are unavailable. Obtain management accounts to assess rental income coverage of operating costs and debt service.
Group Structure Map the full group structure of Am Bell Industrial Properties Limited and assess cross-guarantees, cross-charges, or dependency on group funding facilities.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 27 August 2026