BASH MAINTENANCE CONTRACTS LTD

Executive Summary

Bash Maintenance Contracts Ltd exhibits a significant deterioration in financial health between 2023 and 2024, with net assets and working capital nearly depleted. While regulatory filings are up to date and management stable, the sharp fall in debtors and minimal cash reserves present material solvency and liquidity concerns. Further due diligence is recommended to clarify the underlying causes and assess operational viability.

BASH MAINTENANCE CONTRACTS LTD - Analysis Report

Company Number: SC721714

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH

Justification: The most recent accounts (year ending 29 February 2024) show a severe deterioration in financial position compared to prior years. Net current assets and net assets have collapsed from approximately £3,100 in 2023 to just £51 in 2024. Debtors have dropped from £4,090 to zero, and current liabilities remain significant relative to cash balances. The company barely maintains a positive working capital position and has minimal equity, indicating potential solvency and liquidity risk.

2. Key Concerns:

• Sharp decline in net assets and net current assets from £3,086 to £51 within one year suggests financial distress or possible write-offs/write-downs.
• Complete disappearance of debtor balances (£4,090 in 2023 to £0 in 2024) without corresponding increase in cash or reduction in liabilities raises questions about revenue recognition and cash collection.
• Minimal cash balance (£741) versus current liabilities (£690) means liquidity is extremely tight with little buffer for operational expenses or unexpected costs.

3. Positive Indicators:

• Company is compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Directors have been consistent since incorporation with no adverse records shown, suggesting stable management.
• The company operates in a niche sector (residents property management) which can provide steady recurring income if managed well.

4. Due Diligence Notes:

• Investigate reasons for the disappearance of debtors and whether revenue was deferred, written off, or collected but not reflected as cash.
• Review the company’s cash flow statements and bank reconciliations to assess actual liquidity and cash management practices.
• Understand the nature of the creditors and any contingent liabilities or off-balance sheet obligations.
• Confirm if there have been any operational disruptions, contract losses, or one-off exceptional charges in the latest financial year.
• Obtain clarity on any related party transactions or director loans that might affect financial position.
• Assess the company’s current trading status and prospects given the marked financial decline.