BCARROLL LTD

Executive Summary

BCARROLL LTD maintains a solid fixed asset base but faces ongoing liquidity challenges due to negative working capital and significant creditor reliance. While net assets have increased modestly, the company’s ability to service short-term liabilities depends heavily on stable rental income and creditor arrangements. Conditional credit approval is advised pending confirmation of cash flow stability and debt repayment capacity.

BCARROLL LTD - Analysis Report

Company Number: 12813389

Analysis Date: 2025-07-29 15:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BCARROLL LTD shows a stable asset base primarily composed of fixed assets valued at £416,683, consistent over the last five years. However, the company has a persistent net current liability position, with current liabilities significantly exceeding current assets by approximately £96k as of the latest accounts. The heavy reliance on long-term creditors (£295k+) suggests debt servicing capability may be strained, particularly in the short term. The modest positive net asset value (£24,889) and shareholders' funds reflect limited equity cushion. Given the company operates in real estate letting and has no employees, cash flow generation is likely dependent on rental income streams and asset management. Without detailed profit and loss information or cash flow statements, lending should be cautiously considered, contingent on further evidence of income stability and repayment plans.

2. Financial Strength
   The balance sheet shows a strong fixed asset base, reflecting ownership or leasehold interests in real estate, which underpins the company's net worth. However, current liabilities consistently exceed current assets, resulting in negative working capital. This structural liquidity weakness raises concerns about short-term financial flexibility. Net assets have shown a gradual increase over five years from £373 to £24,889, indicating slow but positive growth in equity. The capital structure is heavily weighted towards creditor financing rather than equity, which may increase financial risk if cash inflows are disrupted.

3. Cash Flow Assessment
   Current liabilities exceed current assets by a considerable margin, indicating potential liquidity stress. The company’s ability to cover short-term obligations from liquid resources appears limited. The lack of employees and presumed low operating costs may reduce cash burn, but no cash flow statements are available to confirm operating cash inflows or outflows. The dependence on long-term creditors suggests refinancing risk if liabilities become due or if rental income fluctuates. Monitoring cash receipts from tenants and any debt repayment schedules will be critical.

4. Monitoring Points

• Track changes in net current assets to identify improvements or deterioration in liquidity.
• Monitor rental income stability and occupancy rates to assess cash flow reliability.
• Review any changes in creditor balances, especially long-term debt maturity and terms.
• Watch for any adverse director or company filings indicating financial distress or restructuring.
• Confirm company’s ability to generate positive cash flow from operations in future filings.
• Given the micro-entity status, request periodic management accounts for real-time liquidity insights.