Company Number: 14759920

Analysis Date: 2025-07-19 12:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Beans Property Ltd is a micro-entity engaged in real estate letting activities with a very recent incorporation date (March 2023). The company shows a positive net asset position which increased from £2,245 in 2024 to £13,122 in 2025. However, the current liabilities notably exceed current assets, resulting in a negative net current asset (working capital) position of approximately -£239k as of March 2025. This indicates short-term liquidity constraints. Given the nature of the business (letting property), it is likely fixed assets represent property holdings which might be illiquid but an asset base nonetheless. The significant shareholder and director control by Mrs. Diane Dodds provides strong governance continuity and decision-making control. The absence of employees and audit exemption aligns with a small-scale start-up profile. Approval is recommended on a conditional basis, subject to monitoring liquidity improvement and confirmation of rental income stability.

2. Financial Strength:
   The balance sheet shows fixed assets of £252,293 unchanged year-on-year, presumably property assets. Current assets increased modestly (£1,200 to £14,103) but remain minimal relative to current liabilities (£251,248 to £253,274). The net asset position has improved but remains low at £13,122. No long-term liabilities or provisions exist, simplifying the financial structure. Shareholders’ funds reflect the net assets and have improved, suggesting some retained earnings or capital injection. The company’s micro-entity status limits detailed financial disclosures, but overall, the financial strength is modest with reliance on fixed assets rather than liquid resources.

3. Cash Flow Assessment:
   The company’s working capital is negative by a substantial margin (~£239k), indicating that current liabilities exceed current assets, which could impair its ability to meet short-term obligations without further financing or cash inflows. The lack of employees and small current asset base suggest minimal operating expenses but also limited cash reserves. Without detailed cash flow statements, the assumption is that rental income or lease payments serve as operating cash inflows. The company must demonstrate consistent rental income or alternative liquidity sources to ensure timely debt servicing.

4. Monitoring Points:

• Liquidity and working capital trends: Watch for improvement in current assets relative to current liabilities.
• Rental income and occupancy rates: Confirm stability and growth to support cash flows.
• Timely filing of accounts and confirmation statements: Company is current but ongoing compliance is critical.
• Director and shareholder changes: Currently stable with a single controlling shareholder/director.
• Any new borrowing or credit facilities that may impact leverage or liquidity.