BEE PROPERTY SERVICES LTD

Executive Summary

BEE PROPERTY SERVICES LTD shows significant financial distress marked by a severe working capital deficit and negative net assets, indicating liquidity problems and accumulated losses. Immediate actions to improve cash flow, reduce costs, and possibly restructure debt or inject equity are critical to restore financial health and avoid insolvency.

BEE PROPERTY SERVICES LTD - Analysis Report

Company Number: 14298335

Analysis Date: 2025-07-29 20:51 UTC

Financial Health Assessment of BEE PROPERTY SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company currently shows significant signs of financial distress, particularly a negative net asset position and substantial working capital deficit. The score reflects that while the business is operational, its financial "vital signs" suggest underlying issues that require urgent attention to avoid insolvency risks.

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2. Key Vital Signs

Metric	Latest (31-03-2024)	Interpretation
Fixed Assets	£7,516	Slight increase; indicates some investment in long-term assets, but still minimal scale.
Current Assets	£2,616	Very low; indicates limited short-term resources to cover immediate expenses.
Current Liabilities	£37,430	High short-term obligations; a red flag for liquidity problems.
Net Current Assets	-£34,814	Large negative working capital; means the company cannot cover short-term debts with current assets.
Total Assets Less CL	-£27,298	Negative value; assets insufficient to cover liabilities, indicating financial weakness.
Net Assets / Equity	-£29,337	Negative shareholder funds; indicates accumulated losses and potential insolvency risk.
Average Employees	19	Workforce size increased, suggesting operational scale-up despite financial strain.

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3. Symptoms Analysis and Diagnosis

• Liquidity Crisis ("Symptom of Distress")
  The company's current assets (£2,616) are drastically outweighed by current liabilities (£37,430), producing a working capital deficit of nearly £35k. This implies the company struggles to pay its immediate debts, a classic symptom of liquidity distress.

• Eroded Equity ("Diagnosis of Financial Weakness")
  The negative net asset position (-£29,337) reflects that the company has accumulated losses exceeding its capital and reserves. This weakens the company's financial foundation and limits its ability to raise funds or weather downturns.

• Recent Deterioration
  Compared to previous years, the company has swung from a small positive equity (£172 in August 2023) to a substantial negative net asset position within 7 months. This rapid decline signals operational or financial difficulties that could threaten solvency.

• Operational Scale vs. Financial Health
  Despite increased staffing (from 12 to 19 employees), the financial resources have diminished, suggesting either operational inefficiencies or revenue shortfalls.

• Director and Management Considerations
  The director appointed at inception resigned in November 2024, which may indicate internal changes or attempts to address governance issues.

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4. Prognosis

If current trends continue without corrective actions, the company faces a heightened risk of insolvency or forced restructuring, given its inability to cover short-term liabilities and negative equity. However, as a micro-entity, the company might still adjust its cost base or secure additional financing to restore liquidity. Swift management intervention is crucial to improve financial stability.

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5. Recommendations

• Improve Liquidity

  • Seek short-term financing to cover immediate liabilities and ease cash flow pressure.
  • Review and optimize working capital management, including faster receivables collection and negotiating extended payment terms with creditors.

• Cost Control and Operational Efficiency

  • Assess staffing levels and operational expenses to align costs with current revenue streams.
  • Consider temporary cost reductions or restructuring to halt loss accumulation.

• Equity Injection or Debt Restructuring

  • Explore options for equity capital infusion from existing shareholders or new investors.
  • Engage with creditors to restructure debts or arrange payment plans to avoid insolvency proceedings.

• Financial Monitoring and Reporting

  • Implement regular cash flow forecasting and financial reporting to detect early warning signs.
  • Engage a professional financial advisor to support turnaround strategies.

• Director and Governance Review

  • Ensure stable and experienced leadership to navigate the company through its financial challenges.

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Medical Analogy:
BEE PROPERTY SERVICES LTD currently exhibits "symptoms of financial distress" akin to a patient with "low blood pressure" (liquidity crunch) and "weak immune system" (negative equity). Immediate "treatment" involving liquidity support and operational adjustments is necessary to prevent "organ failure" (insolvency).

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