BEAT STREET (EDINBURGH) LIMITED

Executive Summary

BEAT STREET (EDINBURGH) LIMITED is a newly formed private company engaged in building project development with a balance sheet showing near parity between current assets and liabilities. The company’s liquidity appears fragile, heavily reliant on a connected party loan, and lacks operational history, which collectively warrant a medium risk rating. Continued monitoring of financial health, related party transactions, and business progress is advised to better evaluate its investment risk profile.

BEAT STREET (EDINBURGH) LIMITED - Analysis Report

Company Number: 15312435

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with a very limited financial track record. Its current assets and liabilities are nearly balanced, leaving almost no working capital buffer, which indicates potential liquidity risk. The reliance on a significant connected party creditor also raises concerns about financial independence and operational sustainability.

2. Key Concerns:

• Liquidity Pressure: Current assets (£1,082,819) only marginally exceed current liabilities (£1,082,342) by £477, which is an extremely thin margin and suggests tight liquidity conditions.
• High Related Party Debt: The majority of current liabilities (£1,081,283) is owed to a connected party (S1 Developments Limited), which may pose counterparty or governance risks if this funding is withdrawn or terms change.
• Lack of Operational History: Incorporated in late 2023 with no turnover or profit and loss information disclosed, limiting ability to assess operational viability or revenue generation capability.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory discipline thus far.
• Directors’ Ownership Alignment: Both directors hold significant shareholdings (25-50%), potentially aligning management and shareholder interests.
• Proper Accounting Policies: The financial statements follow applicable UK accounting standards for small companies, with transparent notes on stock valuation and related party disclosures.

4. Due Diligence Notes:

• Verify the nature and terms of the connected party loan from S1 Developments Limited, including repayment schedules and any guarantees.
• Investigate the company’s business plan and pipeline, especially related to the development of building projects, to assess revenue prospects and cash flow generation.
• Obtain management accounts or cash flow forecasts to better understand short-term liquidity dynamics beyond the balance sheet snapshot.
• Review directors’ background and track record in property development and their capacity to sustain the business operationally and financially.
• Monitor subsequent filings for signs of trading activity, profitability, or changes in related party balances.