BACON DEVELOPMENTS LTD

Executive Summary

BACON DEVELOPMENTS LTD faces significant financial stress as evidenced by growing negative equity and substantial net current liabilities, raising high solvency and liquidity risks. Despite sound compliance and experienced directors, the limited scale and worsening financial position warrant cautious evaluation. Further investigation into cash flows, asset quality, and operational performance is essential before considering investment.

BACON DEVELOPMENTS LTD - Analysis Report

Company Number: 14193062

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing net liabilities and negative shareholders’ funds, indicating solvency challenges. The significant deterioration from £-384 in 2023 to £-6,320 in 2024 suggests financial distress. The negative net current assets position worsened markedly to £-10,353, raising liquidity concerns.

2. Key Concerns:

• Solvency and Capital Deficiency: Shareholders’ funds are deeply negative and have deteriorated substantially over two years, indicating the company’s liabilities exceed its assets.
• Liquidity Risk: Current liabilities (£11,960) significantly exceed current assets (£1,607) with very limited cash (£1,435), suggesting potential difficulties in meeting short-term obligations.
• Operational Stability: The company employs only 2 persons (directors) and has not reported revenue or profit figures in the filed accounts, implying limited operational scale and potential sustainability issues.

3. Positive Indicators:

• Compliance and Governance: All statutory filings including accounts and confirmation statements are up to date with no overdue submissions, reflecting good regulatory compliance.
• Experienced Leadership: Both directors are professionally qualified quantity surveyors, which aligns with the company's activity in building project development, potentially supporting operational competence.
• Active Web Presence: The company has an active website with contact details, which supports business legitimacy and marketing efforts.

4. Due Diligence Notes:

• Review underlying reasons for the negative equity and net current liabilities, including detailed examination of creditor composition and payment terms.
• Investigate cash flow statements or management accounts (not filed) to assess ongoing liquidity and operational cash generation capability.
• Clarify the nature and extent of tangible assets (£3,750) and intangible assets (£283) to understand asset quality and realizability.
• Confirm whether the company is trading at a loss and understand the business model and revenue generation to assess future viability.
• Verify the ownership structure with Bacon Holdings Ltd controlling 75-100% shares to understand group support or exposure.