BEE COOL ACS LTD

Executive Summary

Bee Cool ACS Ltd is financially distressed with persistent negative net assets and significant working capital deficits, primarily funded by director loans and external creditors. The company’s liquidity position has weakened, limiting its ability to meet short-term obligations. Given these factors, credit approval is not recommended without strong mitigation such as capital injection or operational turnaround.

BEE COOL ACS LTD - Analysis Report

Company Number: 12795514

Analysis Date: 2025-07-19 12:44 UTC

Credit Opinion: DECLINE
Bee Cool ACS Ltd exhibits significant financial distress with persistent and increasing net liabilities over the past four years. The company’s net current liabilities have deteriorated from -£135k in 2020 to -£255k in 2023, and shareholders' funds are deeply negative at -£234k. These indicators suggest the company is heavily reliant on creditor financing and potentially director loans, which is confirmed by a large director's current account creditor balance (£236k). With current liabilities exceeding current assets by a wide margin, the company is at high risk of liquidity shortfalls and may struggle to meet short-term obligations.

Financial Strength:
The balance sheet reflects weak financial health: fixed assets are modest (£25.9k) and have declined in net book value; current assets are insufficient to cover current liabilities, resulting in negative working capital. The negative net assets position indicates accumulated losses and erosion of equity. The company’s capital base is minimal (£3 share capital), and no significant reserves exist to absorb shocks. The rising deferred taxation provision (£4.9k) also suggests some tax timing differences but is immaterial relative to liabilities.

Cash Flow Assessment:
Cash balances have fallen sharply from £53k in 2022 to £21.7k in 2023, reducing liquidity buffers. Trade debtors increased significantly to £44.6k, but the large creditor balances—particularly director loans (£236k) and bank loans (£85.6k)—indicate reliance on external and related-party funding for operations. Negative net current assets and growing creditor concentrations imply tight working capital management and potential cash flow stress, raising concerns over the company’s ability to service debts without further capital injection or improved cash generation.

Monitoring Points:

• Monitor the company’s cash flow statements and creditor aging reports for signs of payment delays or defaults.
• Watch director’s current account balances for increases that might indicate ongoing reliance on director funding.
• Review any upcoming refinancing or restructuring plans addressing the negative equity and working capital deficit.
• Keep track of trading performance and profitability trends once profit and loss accounts become available, as absence of this data limits full assessment.
• Confirm ongoing compliance with filing deadlines to avoid additional penalties or regulatory scrutiny.