BEACONS MULTIMEDIA LTD
Company number 08375255 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: BEACONS MULTIMEDIA LTD
1. Credit Opinion: DECLINE
Reasoning: This company is balance sheet insolvent with net liabilities of £14,137 and shareholders' funds deeply negative at £-14,139. Cash reserves are virtually non-existent at £76, and the financial trajectory shows rapid, accelerating deterioration. The company lacks any meaningful capacity to service additional debt obligations. Trading while insolvent raises significant concerns about director fiduciary compliance under the Insolvency Act 1986.
2. Financial Strength: CRITICAL
The balance sheet reveals severe structural weakness:
| Metric | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| Net Assets | (£14,137) | (£6,155) | (£5,019) | £2,306 |
| Shareholders' Funds | (£14,139) | (£6,157) | (£5,021) | £2,306 |
| Cash | £76 | £75 | £1,202 | N/A |
Key Concerns:
- Insolvency: Net liabilities have grown from £6,155 to £14,137 in just one year—a 130% deterioration
- Accumulated Losses: P&L reserve shows £14,139 in accumulated losses, growing by approximately £7,982 in the latest year alone
- Minimal Capital Base: Share capital of just £2 demonstrates owners have committed virtually no equity to the business
- Tangible Assets: Only £5,590 in computer equipment (NBV), offering negligible security value
- Asset Stripping: Total assets halved from £14,017 to £7,506 year-on-year, suggesting either asset disposals or write-downs
The company has been insolvent since 2022 and the position is worsening materially each year.
3. Cash Flow Assessment: SEVERELY IMPAIRED
Working Capital Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £7,506 | £14,017 |
| Current Liabilities | £19,348 | £14,131 |
| Net Current Assets | (£11,842) | (£114) |
| Current Ratio | 0.39:1 | 0.99:1 |
Critical Observations:
- Working Capital Crisis: Net current liabilities exploded from £114 to £11,842 in one year—a near-complete collapse of short-term financial position
- Cash Starvation: £76 cash is insufficient to meet any meaningful obligations; this represents operational paralysis
- Debtors Halving: Trade debtors fell from £13,942 to £7,430, likely indicating declining revenue rather than improved collection
- Creditor Pressure: Current liabilities increased by £5,217 (37%) while current assets fell by £6,511 (46%), creating a severe liquidity mismatch
- Long-term Debt Shift: Creditors due after one year decreased from £12,252 to £7,885, suggesting reclassification to current liabilities or new short-term borrowing
The company has no liquidity buffer and appears dependent on creditor forbearance for continued trading.
4. Monitoring Points
If any exposure exists, the following require immediate attention:
- Viability Assessment: Directors must demonstrate how they intend to resolve the insolvent position; continued trading without a credible recovery plan raises wrongful trading risks
- Creditor Position: Establish who the primary creditors are and whether they are pressing for payment—the £19,348 current liabilities likely include director loans or related party balances
- Revenue Sustainability: Clarify the revenue trajectory given the significant decline in debtors and overall asset base
- Director Loan Accounts: Investigate whether the liabilities include loans from directors, which may indicate personal financial support propping up the company
- Filing Compliance: While accounts are currently up to date, any future delays would be a significant red flag given the insolvent position