BECDAN LIMITED

Executive Summary

BecDan Limited is currently facing high financial risk characterized by negative net assets and working capital deficits as of its 2024 year-end. While the company maintains regulatory compliance and benefits from simplified reporting as a micro-entity, its financial position suggests liquidity and solvency challenges that warrant careful investigation before investment consideration.

BECDAN LIMITED - Analysis Report

Company Number: 13526219

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets of £10,847 in the latest financial year (2024), deteriorating from positive net assets in prior years. Negative working capital and increasing current liabilities relative to current assets indicate liquidity stress.

2. Key Concerns:

• Solvency Deterioration: Net assets flipped from £3,708 in 2023 to a negative £10,847 in 2024, indicating the company’s liabilities now exceed its assets.
• Negative Working Capital: Current liabilities (£45,844) exceed current assets (£34,444) by £11,142 as of 2024, raising concerns over the company’s ability to meet short-term obligations.
• Operational Scale and Sustainability: The company is a micro-entity with only one employee (the director), limited fixed assets (£295), and a relatively short operating history since incorporation in 2021, which may limit operational flexibility and resilience.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are filed on time, with no overdue filings or penalties noted, reflecting good regulatory compliance.
• Sole Director and PSC Alignment: The director and significant shareholder are the same person (Rebecca Sian Russell), which may allow for streamlined decision-making and control.
• Micro-Entity Status: The company benefits from simplified accounting and reporting requirements, potentially reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and increase in current liabilities in the latest year, including the nature of any new debts or payables.
• Review cash flow statements and management accounts (if available) for liquidity trends and operational cash generation capacity.
• Understand the company's business model and revenue streams given the SIC code for retail sale via mail order/Internet, and assess market position and competitive risks.
• Confirm there are no contingent liabilities or off-balance-sheet obligations that may further impact financial stability.
• Evaluate the director’s plans to restore financial health, including any capital injection or restructuring initiatives.