BBB NINE LTD

Executive Summary

BBB Nine Ltd is currently financially distressed with negative equity and severe working capital deficits, relying heavily on external funding and landlord concessions for ongoing operations. The company’s liquidity is constrained and cash flow visibility is limited, making it unsuitable for unsecured credit facilities at this time. Continued close monitoring of operational cash flow and external support arrangements is essential.

BBB NINE LTD - Analysis Report

Company Number: 13130011

Analysis Date: 2025-07-20 12:04 UTC

Credit Opinion: DECLINE
BBB Nine Ltd presents a high credit risk profile. The company has persistent and significant net liabilities (£282k) as at 31 March 2024, worsening from the prior year, indicating a deteriorating financial position. The current liabilities substantially exceed current assets by over £440k, pointing to severe working capital deficiency and liquidity constraints. Despite restructuring lease terms and support from XP Factory plc, the company remains reliant on external funding and landlord cooperation to continue operations. The ongoing negative equity and cash flow pressures make the company unlikely to comfortably meet debt obligations without continued external support.

Financial Strength:
The balance sheet shows tangible fixed assets of £159k, reduced from £281k in the prior period, possibly due to disposals or impairments. Current assets grew to £209k driven by a substantial increase in debtors (£169k vs £38k), but this is overshadowed by current liabilities of £650k. The company’s net current liabilities position of -£441k indicates poor short-term financial health and working capital deficiency. Shareholders’ funds are deeply negative at -£282k, indicative of accumulated losses and eroded equity base. The company’s reliance on contingent rental arrangements and external operator funding highlights structural financial weakness.

Cash Flow Assessment:
Cash on hand increased to £33k from £2k, which is positive, but still insufficient to cover short-term liabilities. The large debtor balance raises concerns about cash conversion efficiency and potential collection risk. The company’s operating model relies on funding from XP Factory plc, which is not guaranteed and may pose a liquidity risk if support is withdrawn. The negative net current assets and increasing creditor balances suggest ongoing cash flow strain. Without improved operational cash generation or equity injections, the company’s liquidity position remains fragile.

Monitoring Points:

• Track changes in net current assets and whether debtor levels translate into actual cash inflows or deteriorate into bad debts.
• Monitor the sustainability of the operating agreement with XP Factory plc and the landlord’s cooperation on rental terms.
• Review future profitability and cash flow forecasts, focusing on whether the company can reduce reliance on external funding.
• Observe any further director or ownership changes that might impact strategic direction or financial support.
• Watch for any overdue filings or signs of financial distress such as administration or liquidation processes.