Company Number: 13814415

Analysis Date: 2025-07-19 12:41 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Beacon Estates Properties Limited demonstrates robust asset backing with significant property holdings and positive net assets. However, there is a concerning deterioration in liquidity and working capital, reflected by a shift from positive net current assets (£425,856 in 2023) to a net current liability position (£-191,859 in 2024). The company’s current liabilities have surged notably, driven in part by increased trade creditors and other short-term obligations. The presence of sizable secured bank loans and related party debts also raises questions about financial flexibility. Approval is recommended subject to close monitoring of cash flow, debt servicing capacity, and confirmation of ongoing operational cash inflows.

Financial Strength:

• Total assets increased from approximately £2.8 million to £3.6 million, mainly due to tangible fixed asset additions (property).
• Net assets have grown from £1.3 million to £1.55 million, providing a solid equity base.
• The company’s balance sheet shows a high proportion of debt, with total creditors after one year at £1.82 million, including bank loans (£724k) and related party loans (£1.1 million).
• Share capital is minimal (£200), indicating limited equity injection beyond retained earnings.
• Investment properties are carried at cost without depreciation, which aligns with accounting policies for long-term property investments but may mask asset impairments in adverse markets.

Cash Flow Assessment:

• Cash reserves have halved from £552,397 to £266,524, indicating potential liquidity strain.
• Current liabilities have nearly doubled from £241,896 to £472,480, outpacing current assets which have fallen to £280,621.
• Negative net current assets (-£191,859) imply the company may face short-term funding pressures.
• The company has no employees, suggesting low operational overhead but also limited internal capacity to generate cash flow.
• Related party transactions show significant balances owed (£1.1 million), which may provide informal financing but present credit concentration risk.

Monitoring Points:

• Track monthly cash flow and liquidity metrics to ensure short-term obligations can be met.
• Review related party balances and the terms of these loans to assess refinancing or repayment risk.
• Monitor property valuations and potential market risks that could affect asset values and collateral support.
• Confirm the company’s ability to generate rental or other operating income to service debt, especially given the lack of employee activity.
• Review future filings for any signs of increased defaults or delays in payment to suppliers and creditors.