Company Number: 13938536

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Bearman Properties Limited is a newly incorporated private limited company engaged in the management and trading of real estate assets. The company shows positive net assets as of the latest financial year ending February 2024, reversing prior year deficits, indicating early signs of financial stabilization. However, the company’s working capital position is negative, with current liabilities (£76k) significantly exceeding current assets (£5.8k), resulting in a net current liability of approximately £70k. The company carries a substantial long-term bank loan of £180k, which is a significant financial obligation given the small scale of operations and limited cash reserves. The absence of turnover and profit and loss disclosure limits visibility on operational cash generation. Given these factors, credit approval should be conditional on:

• Confirmation of sustainable cash flows or income streams to service debt and operating expenses
• Additional collateral or personal guarantees due to the negative working capital and limited equity
• Monitoring of future filings to ensure continued improvement in liquidity and profitability

2. Financial Strength: The balance sheet is dominated by investment property valued at £251k, which remains stable year-over-year. Shareholders’ funds have improved marginally to £596 from a negative position, reflecting some retained earnings or capital injection. However, the company’s net current liabilities around £70k highlight liquidity constraints, and the heavy reliance on bank debt (£180k) underscores leverage risk. The fixed asset base is relatively illiquid, limiting options for quick asset conversion to meet short-term obligations.

3. Cash Flow Assessment: Cash at bank is minimal (£5.8k), insufficient to cover current liabilities of £76k, implying a working capital deficit that may pressure day-to-day operations. With only one employee (the director) and no disclosed turnover, operational cash inflows are unclear, raising concerns about the ability to service the bank loan and creditors promptly. The company’s cash flow depends heavily on rental income or property sales, which have not been explicitly reported. The negative working capital and debt structure require close scrutiny of incoming cash flows and creditor payment terms.

4. Monitoring Points:

• Monitor upcoming filings for turnover and profit and loss information to assess operational cash generation.
• Watch liquidity ratios and net current asset position for signs of improvement.
• Track bank loan repayment schedule and any refinancing arrangements.
• Review director’s financial conduct and any additional capital injections or guarantees.
• Assess market conditions for investment property to understand asset value stability.