BEANIE PROJECT LIMITED

Executive Summary

BEANIE PROJECT LIMITED shows high financial risk primarily driven by negative net assets and a significant working capital deficit just over one year after incorporation. While the company maintains regulatory compliance and governance structure, its liquidity position and solvency are areas of concern requiring immediate further investigation. Investors should exercise caution and seek detailed insights into cash flow and creditor arrangements before commitment.

BEANIE PROJECT LIMITED - Analysis Report

Company Number: 15113910

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets of £42,021 just over one year since incorporation. Current liabilities greatly exceed current assets, indicating liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds stand at -£42,022, indicating it is technically insolvent on a balance sheet basis.
• Severe Working Capital Deficit: Current liabilities of £33,996 far exceed current assets of £5,750, resulting in a negative net current asset position of -£28,246. This raises serious liquidity risk and potential difficulty meeting short-term obligations.
• High Long-term Debt Relative to Assets: Creditors due after one year amount to £14,842, which further burdens the financial position given minimal fixed assets (£1,067).

3. Positive Indicators:

• Compliance and Filing: No overdue accounts or confirmation statements; filings appear up to date, indicating regulatory compliance so far.
• Multiple Directors and Significant Control: Presence of several directors with diverse backgrounds (banker, publican, engineer) and a clear PSC register suggests some governance structure in place.
• Operating in a Defined Industry: The company’s SIC code (56302) identifies it as operating in public houses and bars, a sector with potential for steady cash flow if well managed.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors, especially the composition of the long-term borrowings and whether these are secured loans or overdrafts.
• Review the company's cash flow projections and business plan to understand how it intends to manage the current liquidity shortfall.
• Clarify reasons behind the substantial negative retained earnings (P&L reserve) after just over one year of trading—possible early losses or capital withdrawals.
• Confirm the operational status of the business (trading activity, revenue generation) since limited financial data is available.
• Assess any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.