Company Number: 12553364

Analysis Date: 2025-07-20 13:10 UTC

1. Credit Opinion: DECLINE
   Bascos AD Ltd shows significant financial distress with persistent and increasing net current liabilities and shareholders’ deficit, indicating poor liquidity and solvency. The large working capital deficit (£149k negative in 2024) and negative net assets (£120.9k) raise serious concerns about its ability to meet short-term obligations or service any new or existing credit facilities. The absence of debt in 2024 suggests the company may have repaid earlier borrowings but still struggles with payables and tax liabilities. Given these factors, extending credit without substantial security or guarantees would be high risk.

2. Financial Strength:
   The company’s balance sheet reveals a declining financial position over the past three years. Tangible fixed assets have decreased due to depreciation but remain at £28.5k. However, current liabilities (£151k) far exceed current assets (£1.9k), resulting in a large negative net current asset position. Retained losses have increased markedly, reflecting ongoing operating losses or inadequate profitability. Share capital is minimal (£100), providing no buffer. The negative equity position indicates insolvency from an accounting perspective.

3. Cash Flow Assessment:
   Cash balances are very low and declining (£1,874 in 2024 vs £2,760 in 2023) with no trade debtors reported in 2024, implying limited incoming cash flow from operations. The company has significant overdue tax and other creditors, indicating cash flow pressures. The working capital deficit signals inability to cover short-term commitments, which may lead to liquidity crises if not addressed promptly.

4. Monitoring Points:

• Track monthly cash flow projections to assess liquidity trends and ability to cover current liabilities.
• Monitor changes in trade creditors and tax liabilities for signs of worsening payables or HMRC pressures.
• Review profitability and cash conversion cycles to evaluate operational improvements.
• Assess director’s actions or restructuring plans to improve financial health, given the ongoing losses and negative net assets.
• Watch for any external financing or capital injections that might strengthen the balance sheet.