BDC CONSULTING GROUP LTD

Executive Summary

BDC Consulting Group Ltd exhibits a weak financial position with persistent negative net assets and poor liquidity, indicating limited capacity to service debt. The company’s ongoing reliance on creditor funding and declining cash reserves signal elevated credit risk. Without significant operational or financial improvement, extending credit is not recommended at this stage.

BDC CONSULTING GROUP LTD - Analysis Report

Company Number: 13547128

Analysis Date: 2025-07-29 19:16 UTC

1. Credit Opinion: DECLINE
   BDC Consulting Group Ltd shows persistent negative net assets and net current liabilities over the past four years, indicating ongoing financial distress. The company's shareholders' funds are significantly negative (£-71k as of 2024), with current liabilities exceeding current assets by over £71k. The absence of employees and reliance on trade creditors raise concerns about operational capacity and financial management. These factors suggest insufficient ability to meet debt obligations on time and an overall weak credit profile.

2. Financial Strength:
   The balance sheet reveals ongoing erosion of equity, with net liabilities increasing from £-50.9k in 2021 to £-71.1k in 2024. Current liabilities have remained high and even slightly increased (from £161k to £194k), while current assets have fluctuated but show a declining trend from £138k in 2022 to £123k in 2024. The company’s fixed assets are minimal or not reported, and cash reserves have decreased sharply from nearly £95k in 2021 to just £5.7k in 2024, indicating poor liquidity management and limited buffer to absorb financial shocks.

3. Cash Flow Assessment:
   The cash at bank has fallen drastically to £5,770 in 2024, down from £94,695 in 2021, signaling tight liquidity. Trade debtors remain high (~£108k), but the company’s high trade creditors (£176k) suggest a stretched working capital cycle. Negative net current assets imply the company is relying on short-term creditor financing to fund operations, which is unsustainable long term. The lack of employees suggests that operations may be minimal, potentially limiting revenue generation and cash inflows.

4. Monitoring Points:

• Liquidity trends: monitor cash balances and net current assets closely to detect worsening short-term liquidity.
• Trade creditor aging and payment behavior: delays could precipitate supplier pressure or legal action.
• Debtor collection efficiency and aging: slow collections will worsen cash flow.
• Any improvements in shareholders’ funds and profitability to signal recovery.
• Management actions to reduce liabilities or raise capital.