BE CONNECTED SOLUTIONS LTD

Executive Summary

Be Connected Solutions Ltd is a small security systems service provider with a marginally positive net asset position and minimal cash reserves, indicating tight liquidity. The company’s increased liabilities, particularly tax-related, and reliance on debtors for working capital require cautious credit exposure and close monitoring of cash flow and debtor collections. Conditional approval is recommended with emphasis on liquidity management and timely payments.

BE CONNECTED SOLUTIONS LTD - Analysis Report

Company Number: 12551449

Analysis Date: 2025-07-20 13:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Be Connected Solutions Ltd shows positive but very modest net current assets (£1,020 at 31/08/2024) and shareholders’ funds (£1,151), indicating a marginally positive balance sheet position. However, the company’s working capital position is very tight, and cash balances are minimal (£415), which may constrain liquidity. The increase in debtors and liabilities compared with prior years suggests possible cash flow strain. Given the company’s small scale, limited asset base, and low cash reserves, credit exposure should be limited and closely monitored. Approval is conditional upon assurances regarding payment terms and monitoring of debtor collections and creditor payments.

2. Financial Strength:
   The company is classified as a small private limited entity, with minimal fixed assets (£131) and a current asset base largely composed of debtors (£55,225). The shareholders’ funds have increased from £117 in 2023 to £1,151 in 2024, indicating some retained earnings or capital injection, but the overall net asset base remains low. Current liabilities have grown to £54,620, primarily taxation and social security liabilities (£49,888), which could indicate accrued PAYE/VAT or other statutory obligations. The balance sheet shows the company is solvent but with little buffer to absorb financial shocks.

3. Cash Flow Assessment:
   Cash at bank is very low (£415), which is a concern for day-to-day liquidity. The company’s working capital is positive but marginal (£1,020), meaning current assets only just cover current liabilities. The substantial balance of debtors relative to cash suggests reliance on timely collection of receivables to meet short-term obligations. The increase in creditors, especially tax liabilities, may indicate potential cash flow stress or timing differences in payments. Overall, liquidity risk is moderate and demands active management of receivables and payables.

4. Monitoring Points:

• Debtor aging and collection efficiency, to ensure receivables convert to cash timely.
• Taxation and social security liabilities to check for any late payments or accrual build-up.
• Cash flow trends and availability of short-term financing if required.
• Any changes in payment terms with suppliers and customers.
• Timely filing of accounts and confirmation statements to maintain transparency and compliance.