BC NEXUS LIMITED

Executive Summary

BC Nexus Limited demonstrates moderate financial stability with positive net current assets and full regulatory compliance. However, the significant reliance on intercompany receivables and declining net assets warrant further scrutiny of liquidity and operational sustainability before investment. Overall, the company’s current financial position is adequate but requires monitoring of cash flow and related party exposure.

BC NEXUS LIMITED - Analysis Report

Company Number: 13752445

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: MEDIUM
   The company's financial data suggests moderate solvency with positive net current assets and net assets; however, the significant reduction in current assets and cash balances in the latest year, along with large intercompany receivables, raise concerns about liquidity and cash flow reliability.

2. Key Concerns:

• Liquidity Strain: Cash on hand dropped substantially from £5,124 (2023) to £1,094 (2024), potentially indicating cash flow pressure.
• Concentration of Debtors: A large portion of current assets (£26,058 in 2024) consists of amounts owed by a related party (SG Nexus Limited), which creates counterparty risk if that debtor defaults or delays payment.
• Declining Net Assets: Net assets fell from £37,002 (2022) to £22,543 (2024), suggesting erosion in retained earnings or capital that could impact operational stability.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains net current assets of £22,543 as of the latest year end, indicating current liabilities are covered by current assets.
• Compliance and Timely Filings: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance.
• Sole Director and Control: Dr. Stephen Edward Gwilym holds full ownership and control, simplifying governance and decision-making.

4. Due Diligence Notes:

• Review the nature and collectability of intercompany balances with SG Nexus Limited, including payment terms and financial health of that entity.
• Investigate reasons for the decline in cash balances despite reasonable net current assets, to assess short-term liquidity management.
• Examine the underlying causes of net asset reduction over two years to understand profitability and capital retention trends.
• Confirm there are no undisclosed contingent liabilities or related party transactions that might affect financial stability.
• Assess the business model and client base sustainability in the specialist medical practice sector given the company's young age (incorporated 2021).