BAMPLETON PROPERTIES LIMITED

Executive Summary

Bampleton Properties Limited is financially stable with solid equity and positive working capital, reflecting overall good health. However, the company shows signs of potential short-term liquidity constraints due to low cash reserves and high inventory levels. Addressing cash flow management and inventory turnover will enhance financial resilience and support sustainable growth.

BAMPLETON PROPERTIES LIMITED - Analysis Report

Company Number: 12807488

Analysis Date: 2025-07-20 11:45 UTC

Financial Health Assessment of Bampleton Properties Limited

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1. Financial Health Score: B+

Explanation:
The company shows a stable and solid financial footing with positive net current assets and shareholders' funds consistently just under £300,000. The low share capital and absence of long-term liabilities suggest a conservative capital structure. However, the liquidity is somewhat constrained by very low cash balances relative to current liabilities, indicating potential short-term cash flow tightness. The shift from debtors to stock in the latest year also raises questions about asset liquidity. Overall, this is a financially sound company but with room to strengthen cash flow management and working capital liquidity.

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2. Key Vital Signs

Metric	Latest Value (31-01-2025)	Interpretation
Current Assets	£659,808	Healthy level, increased from previous year.
Cash at Bank	£4,070	Very low cash reserves, could cause short-term liquidity stress.
Debtors	£0	Debtors eliminated, replaced by stocks, improving cash conversion but may pose inventory risks.
Stocks	£655,738	Large stock holding, concentration in inventory could be a liquidity risk if unsold.
Current Liabilities	£366,183	Manageable but sizeable short-term obligations.
Net Current Assets (Working Capital)	£293,625	Positive working capital, indicating short-term financial health.
Shareholders' Funds	£293,625	Solid equity base relative to size; no significant debt noted.
Consistency Over Years	Stable net current assets and equity over 5 years, indicating financial stability.

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3. Diagnosis: Financial Condition Overview

Bampleton Properties Limited exhibits the symptoms of a financially stable company with a good equity buffer and positive net current assets — akin to a patient with steady vital signs and no immediate signs of distress. The shift from high debtors to high stock levels in the latest year suggests a change in operational dynamics, perhaps due to increased property or building materials held for sale or development, given the company’s SIC codes (real estate letting and construction).

However, the very low cash balance is a symptom of potential liquidity strain, meaning the company may face challenges in meeting immediate obligations without converting stock or raising cash. This is a critical area to monitor, as real estate and construction stocks can sometimes be illiquid or slow-moving, creating a risk of “cash flow congestion.”

The company's financial statements are unaudited and abridged, reflecting a micro-sized entity operating within small company thresholds. This reduces transparency somewhat but is typical for a company of this scale.

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4. Recommendations: Improving Financial Wellness

• Enhance Cash Reserves: Investigate ways to increase cash holdings to ensure healthy cash flow for operational needs. This may involve negotiating better payment terms with customers or suppliers or arranging short-term financing facilities.

• Inventory Management: Conduct a thorough review of stock levels and turnover rates. Large stock holdings can tie up capital and increase risk if properties or materials are not sold timely.

• Debtor Monitoring: While debtors are currently zero, maintain strong credit control practices to avoid future receivables build-up that could strain cash flow.

• Working Capital Optimization: Consider strategies to better balance current assets and liabilities, such as staggered payment schedules or supplier discounts for early payment.

• Financial Reporting: Although exempt from audit, consider periodic review or assurance to provide stakeholders with greater confidence in financial health.

• Strategic Planning: Given the company’s involvement in property letting and construction, maintain vigilance on market conditions affecting property values and construction costs to anticipate financial impacts.

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