BASSETT SIMMONDS PROPERTY DEVELOPMENT LTD

Executive Summary

Bassett Simmonds Property Development Ltd shows modest but positive financial progress with improving net assets and working capital. Liquidity remains tight but manageable, warranting conditional credit approval with close monitoring of cash flow and current liabilities. The company’s small scale and sector exposure necessitate ongoing review to ensure continued debt servicing capability.

BASSETT SIMMONDS PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 13528043

Analysis Date: 2025-07-29 15:44 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Bassett Simmonds Property Development Ltd is a relatively young private limited company operating in the property development sector. It demonstrates modest but improving net current assets and shareholders’ funds, indicating incremental balance sheet strengthening. However, the company’s low cash balances relative to current liabilities and relatively small asset base suggest limited liquidity buffers. Credit extension should be cautious and subject to regular monitoring of cash flow and working capital trends, especially given the cyclical nature of property development.

Financial Strength:

• The company’s net assets increased from £6,040 in 2023 to £7,134 in 2024, showing a positive but modest growth trajectory.
• Shareholders’ funds increased correspondingly, reflecting retained earnings accumulation.
• Fixed assets are minimal (£1,603), representing mainly computer equipment, consistent with a service/support function rather than heavy capital investment.
• Current assets rose from £20,998 to £28,253, chiefly due to an increase in cash from £146 to £10,071.
• Current liabilities also increased from £17,146 to £22,722, driven by higher taxation/social security and other creditors, which slightly compresses working capital.
• Net current assets improved from £3,852 to £5,531, indicating better short-term financial health.

Cash Flow Assessment:

• Despite an increase in cash holdings, cash remains relatively low compared to current liabilities (£10,071 cash vs. £22,722 current liabilities).
• Debtors remain significant (£18,182), but marginally decreased from prior year, reflecting some collection risk.
• The company’s liquidity position is adequate but tight, consistent with a small business in property development that may have fluctuating cash requirements depending on project cycles and payment terms.
• The presence of tax and social security liabilities as a large portion of current liabilities suggests timely compliance but also limited cash flexibility.
• Working capital is positive, but close monitoring is advised to ensure cash flow supports operational and debt servicing needs.

Monitoring Points:

• Track cash conversion cycle closely, especially debtor collections and creditor payment terms.
• Monitor current liabilities trends, particularly taxation and social security obligations, to avoid cash flow strain.
• Review future filings for turnover and profitability trends to assess earnings sustainability.
• Observe any changes in directors or significant control that could impact governance or financial strategy.
• Watch for any increases in fixed assets or capital expenditure that might affect liquidity.
• Given the company’s young age and industry, economic downturns impacting property development demand should be factored into risk assessments.