BEAUTIFUL HOLIDAY HOMES LTD

Executive Summary

Beautiful Holiday Homes Ltd exhibits some liquidity concerns with persistent negative net current assets, although it maintains regulatory compliance and shows signs of improving short-term liabilities. The company’s concentrated ownership and low equity base present operational and governance risks that merit further investigation. Overall, the business requires close monitoring of cash flow and operational performance to ensure ongoing financial stability.

BEAUTIFUL HOLIDAY HOMES LTD - Analysis Report

Company Number: SC669956

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: MEDIUM
   This rating is based on the company’s consistent negative net current assets over the past three years, indicating potential liquidity challenges, despite positive shareholder funds and continued active status with no overdue filings.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £14,046 as of August 2023, improving slightly from £20,280 in 2022, which suggests ongoing liquidity pressure to meet short-term obligations.
• Low Share Capital and Minimal Equity Cushion: Share capital is nominal (£1.00) and shareholders’ funds are low (£6,389), limiting the financial buffer to absorb losses or shocks.
• Single Director and Majority Control: Mrs Sonia Emma Forbes holds 75-100% ownership and voting rights, with sole directorship, which concentrates operational and governance risk without evident checks and balances.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements; filings are up to date, demonstrating regulatory compliance and good governance practices.
• Steady Operating Base: The company employs one person consistently and operates in a niche market (holiday accommodation), which may support stable revenue streams if well-managed.
• Reduced Current Liabilities: The decrease in current liabilities from £261,423 in 2022 to £144,999 in 2023 shows some effort to improve short-term solvency and balance sheet management.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements or bank statements to assess real-time liquidity and working capital management.
• Revenue and Profit Trends: Examine turnover, profitability, and margins trends over the last three years to evaluate operational sustainability.
• Director’s Related Party Transactions: Given sole directorship and ownership, review related party transactions or loans that might affect financial stability or risk exposure.
• Customer and Market Dependency: Assess the business model’s resilience, client concentration, and market conditions impacting holiday accommodation demand, especially post-pandemic.
• Financial Guarantees or Contingent Liabilities: Look for any off-balance-sheet liabilities or guarantees that could impact solvency.