BASH PROJECTS LTD

Executive Summary

BASH Projects Ltd's financials reveal significant liquidity and solvency challenges, with negative net assets and a large working capital deficit. The company’s limited operational scale and lack of cash flow visibility increase credit risk, leading to a decline recommendation for credit facilities. Close monitoring of liquidity and financial performance is essential for any future reassessment.

BASH PROJECTS LTD - Analysis Report

Company Number: 13971560

Analysis Date: 2025-07-29 17:30 UTC

1. Credit Opinion: DECLINE
   BASH Projects Ltd exhibits a concerning financial position with net liabilities of £161,956 as at 31 March 2024, worsening from £78,436 the previous year. The company’s current liabilities (£1,580,244) significantly exceed its current assets (£217,304), resulting in a negative working capital position of -£1,362,940. This indicates a potential liquidity crisis and inability to meet short-term obligations without additional financing. Given the micro-entity size, zero employees, and no income statement provided, there is limited evidence of operational cash flow generation or business activity to support debt servicing. The negative equity and recurring losses suggest financial distress and heightened risk of default. Without a clear turnaround plan, credit extension is not advisable at this stage.

2. Financial Strength:
   The balance sheet is heavily leveraged with fixed assets of £1.2m offset by substantial creditors due within one year. The company’s net assets are negative, reflecting accumulated losses or overleveraging. The increase in fixed assets from £520,000 to £1,200,984 may indicate recent property acquisition or valuation adjustments, but these assets are not supported by sufficient working capital. The absence of employees and limited operational data raises questions about management’s ability to generate sustainable revenue. Overall, the financial strength is weak, with solvency concerns evident from negative net assets and poor liquidity.

3. Cash Flow Assessment:
   Current liabilities exceeding current assets by a large margin signals poor liquidity and potential cash flow constraints. The company’s working capital deficit (-£1.36m) suggests difficulty in meeting short-term payments without external funding. No information on cash reserves or operating cash inflows is provided, and the micro-entity exemption means income details are unavailable. This lack of transparency combined with negative net assets points to insufficient cash flow to service debt or fund ongoing operations. The risk of payment default is elevated.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) on future filings to assess improvement or further deterioration
• Changes in net assets and equity position to monitor solvency trends
• Evidence of operational cash flow or revenue generation in subsequent accounts
• Director appointments and related-party transactions, given the recent addition of a director in September 2024
• Any external financing or restructuring plans disclosed in future reports