BAMU LIMITED

Executive Summary

BAMU LIMITED is a micro private company with stable compliance but showing a marked decrease in net assets and shareholders’ funds in the latest financial year. While short-term solvency appears sufficient, the erosion of equity and high deferred income balance warrant further investigation to assess financial stability and operational sustainability. No regulatory or governance concerns are evident from available data.

BAMU LIMITED - Analysis Report

Company Number: 12573174

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM

Justification: BAMU LIMITED demonstrates a decline in net assets from £16,258 in 2023 to £1,185 in 2024, indicating deteriorating equity. While the company remains solvent with positive net current assets (£16,486 in 2024), the sharp reduction in shareholders' funds signals potential financial stress. The company is micro-sized with limited employee count (2 employees), which may constrain operational scale and resilience. There are no overdue filings or status concerns, which supports compliance.

2. Key Concerns:

• Significant drop in net assets and shareholders' funds between 2023 and 2024 (from £16,258 to £1,185), suggesting erosion of capital.
• High level of accruals and deferred income (£35,533 in 2024), which may indicate revenues received in advance or unrecognized liabilities affecting liquidity.
• Small scale of operations (micro-entity with only 2 employees) limits operational flexibility and may impact sustainability if market conditions worsen.

3. Positive Indicators:

• Company remains active and compliant with all filing deadlines; no overdue accounts or confirmation statements.
• Positive net current assets (£16,486 in 2024) suggest the company can cover short-term liabilities.
• Ownership and management appear stable, with a single director owning 50-75% shares and controlling voting rights, simplifying governance and decision-making.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and shareholders' funds between 2023 and 2024, including any one-off charges, losses, or asset impairments.
• Review the nature and composition of accruals and deferred income to assess any contingent liabilities or revenue recognition issues.
• Assess cash flow statements and working capital trends to evaluate liquidity beyond balance sheet snapshots.
• Understand business model sustainability and growth prospects given the small operational scale and industry classification (other business support services).