BC PLUMBING & MAINTENANCE LIMITED

Executive Summary

BC Plumbing & Maintenance Limited is currently in a weak financial position with significant negative net assets and worsening liquidity, indicating an inability to meet short-term liabilities. The deteriorating balance sheet and lack of cash reserves pose high credit risk, leading to a decline in credit approval. Close monitoring of cash flow and any capital support is essential before reconsidering credit facilities.

BC PLUMBING & MAINTENANCE LIMITED - Analysis Report

Company Number: 13910102

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: DECLINE
   BC Plumbing & Maintenance Limited exhibits a troubling financial position with significant net liabilities and negative shareholders' funds as of the latest accounts (Feb 2024). The company’s net current liabilities have worsened sharply from -£2,470 in 2023 to -£11,850 in 2024, indicating a severe working capital shortfall. This raises serious concerns about its ability to meet short-term obligations and service any additional debt. The negative net assets position (-£11,986) signals insolvency on a balance sheet basis, which is a substantial credit risk. Without clear evidence of imminent capital injection or business turnaround, extending credit is not advisable at this time.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Fixed assets are minimal (£584) and current assets have dropped drastically from £594 in 2023 to only £72 in 2024. Meanwhile, current liabilities have quadrupled from £3,064 to £11,922. The company has no retained earnings or reserves to buffer losses, and the negative equity position highlights accumulated losses or funding shortfalls. This financial fragility limits the company’s ability to absorb operational shocks or invest in growth.

3. Cash Flow Assessment:
   The extremely low current assets relative to current liabilities imply severe liquidity constraints. Negative net current assets indicate that the company cannot fully cover its short-term debts with its available liquid resources. This suggests potential cash flow difficulties in day-to-day operations, increasing the risk of payment delays or defaults. Given the absence of any disclosed cash reserves or other liquid assets, the company relies heavily on external financing or owner support to maintain solvency.

4. Monitoring Points:

• Monitor quarterly cash flow statements closely to detect any improvement or worsening in liquidity.
• Watch for any capital injections or shareholder loans that could improve net assets and working capital.
• Review subsequent filings for evidence of improved profitability or operational restructuring.
• Track any changes in director or significant control that might indicate strategic shifts or risk mitigation.
• Keep alert for overdue filings or signs of insolvency proceedings.