Company Number: 12495218

Analysis Date: 2025-07-29 17:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Beatus Vir Limited shows stable net assets and holds investment property valued at £140,000, which supports its asset base. However, the company’s current liabilities significantly exceed current assets, resulting in negative working capital each year, which indicates potential liquidity strain. The director’s valuation of the property and the absence of audit reduce transparency, so credit approval should be conditional on obtaining further cash flow projections and confirmation of rental income stability to ensure debt servicing capacity.

2. Financial Strength:
   The company’s fixed assets (investment property) remain constant at £140,000, with net assets increasing modestly to £20,954 in 2024 from £19,108 in 2023. Shareholders’ funds have grown steadily, reflecting retained profits accumulated in the distributable reserve and a non-distributable profits reserve of £10,225. However, substantial long-term liabilities (bank loans of approx. £85k) and consistent negative net current assets (around -£31k) indicate a leveraged position and limited short-term financial flexibility.

3. Cash Flow Assessment:
   Cash on hand is minimal (£45 in 2024), and current liabilities are over £31,000, highlighting tight liquidity. Negative net current assets for multiple years suggest the company may rely on long-term borrowing or rental income for operating cash flow rather than liquid assets. The lack of detailed profit and loss data and reliance on rental income valuation from the director's estimate mean cash flow predictability is uncertain and needs further verification before extending credit.

4. Monitoring Points:

• Rental income consistency and any changes in tenancy or vacancy rates.
• Timely servicing of bank loans and any changes in borrowing terms.
• Movement in working capital, especially cash and creditors.
• Confirmation of property valuation and any impairment risks.
• Timely submission of accounts and returns to avoid compliance risk.