Company Number: 13438992

Analysis Date: 2025-07-20 17:16 UTC

1. Risk Rating: MEDIUM
   Beaufort Brook Limited demonstrates solid net asset backing primarily through investment property valued at £7.99 million. However, the company carries substantial long-term liabilities (£4.2 million) and current liabilities that exceed current assets, which raises some liquidity and solvency concerns despite positive net assets. The lack of audit and limited disclosure on operational cash flows constrain a full risk assessment.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities (~£380k) are less than current assets (~£550k) for 2024, which is positive, but significant long-term liabilities (~£4.2 million) create a high gearing level, potentially stressing cash flow if property revenues are disrupted.
• Dependency on Investment Property Valuation: The company’s net assets are heavily reliant on the fair value of investment property (£7.99 million). This valuation is director-assessed and unaudited, potentially subject to overstatement risk.
• Limited Operational Transparency: The accounts omit profit and loss details and are unaudited. There is minimal information on rental income, cash flow generation, or debt servicing capacity, limiting insight into operational sustainability.

3. Positive Indicators:

• Strong Net Asset Position: With net assets approaching £3 million and shareholders’ funds stable compared to prior years, the balance sheet appears robust in terms of equity.
• No Overdue Filings: The company is current with all statutory accounts and confirmation statement filings, indicating good compliance and governance discipline.
• Established Directors: Directors have been consistent since incorporation with no adverse information noted, suggesting stable management.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss accounts (not filed here) to assess income stability, rental yields, and debt coverage ratios.
• Confirm the methodology and independence of the investment property valuation and any encumbrances on assets securing loans.
• Investigate the nature and terms of long-term creditors and bank loans, including maturity profiles and interest obligations.
• Assess the company’s strategy for managing liquidity risk given the high level of debt relative to liquid assets.
• Verify if there are any contingent liabilities or off-balance-sheet exposures not disclosed.