B K PROPERTY SERVICES LTD

Executive Summary

B K PROPERTY SERVICES LTD is a newly formed micro-entity in a specialized construction niche with marginal profitability but negative net equity and working capital deficits. The company’s current financial weakness and limited scale undermine its capacity to service credit reliably. Without significant improvement in capital structure and liquidity, credit approval is not recommended at this stage.

B K PROPERTY SERVICES LTD - Analysis Report

Company Number: 14243419

Analysis Date: 2025-07-20 18:54 UTC

1. Credit Opinion: DECLINE

B K PROPERTY SERVICES LTD is a micro-entity incorporated in July 2022, operating in the niche construction sector (SIC 43999). The company reported a modest turnover of £26,604 for the year ending July 2024 with a small net profit of £3,476. However, its financial position is weak, showing net liabilities of £3,623 and negative net current assets of £1,590. The presence of creditors due after one year amounting to £3,550 exacerbates the negative equity situation. The company has no employees and limited fixed assets. Given the negative net asset position, weak liquidity, and minimal operating scale, the company currently lacks the financial strength and business resilience to reliably service significant debt or credit facilities. The absence of historical financial depth (only 2 years of data) and negative net equity raise concerns about management’s capital structure and financial stewardship. Therefore, a credit facility at this stage would carry high risk without substantial improvement or security.

2. Financial Strength:

The balance sheet reveals a net liability position of £3,623 as of July 2024, with fixed assets of only £1,517. Current liabilities exceed current assets by £1,590, causing negative working capital. Long-term creditors of £3,550 add further financial burden. Shareholders’ funds are negative, indicating the company’s accumulated losses exceed contributed capital. This weak equity base undermines solvency and limits flexibility to absorb shocks. The company’s micro status and small turnover underline its limited scale and resources.

3. Cash Flow Assessment:

While the company generated a small profit, the negative net current assets suggest liquidity strain. The lack of employees and low overhead may mitigate cash burn, but the working capital deficit and creditor obligations indicate tight cash flow management. The absence of disclosed cash or bank balances limits clarity on actual liquidity. The company’s ability to meet short-term obligations and fund growth is constrained, increasing the risk of cash flow shortfalls.

4. Monitoring Points:

• Net asset position and movements in shareholders’ funds to detect capital erosion or improvement.
• Working capital trends to assess liquidity management.
• Turnover growth and profitability to evaluate business trajectory.
• Creditor aging and payment patterns to monitor financial discipline.
• Any new capital injections or restructuring to bolster solvency.
• Directors’ actions regarding financial strategy and risk mitigation.