BEE SMART REMOVALS AND STORAGE LIMITED

Executive Summary

BEE SMART REMOVALS AND STORAGE LIMITED is showing early signs of financial distress, with negative net worth and a significant working capital deficit indicating liquidity issues. While the company has invested in fixed assets, careful cash flow management and potential recapitalization are critical to stabilizing its financial health. Immediate action focusing on improving liquidity and controlling costs will be essential to avoid deeper financial difficulties.

BEE SMART REMOVALS AND STORAGE LIMITED - Analysis Report

Company Number: SC741807

Analysis Date: 2025-07-20 16:58 UTC

Financial Health Assessment: BEE SMART REMOVALS AND STORAGE LIMITED

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1. Financial Health Score: D

Explanation:
The company shows a significant deterioration in financial health over the last year, indicated by a negative shareholders’ funds position (£-34,838) as of August 2024, compared to positive equity in previous years. This signals symptoms of financial distress, including a working capital deficit and increased liabilities that outweigh assets. The score D reflects caution due to these warning signs, although the company is still operational.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	22,219	Increased investment in long-term assets, possibly equipment for operations.
Current Assets	15,943	Cash, receivables, and stock have grown but remain low relative to liabilities.
Current Liabilities	72,539	Substantial short-term debts, more than 4.5 times current assets – a critical red flag.
Creditors (Long-term)	461	Small amount of longer-term liabilities.
Shareholders Funds (Equity)	-34,838	Negative net worth; liabilities exceed assets, indicating insolvency risk.
Net Current Assets	-56,596	Working capital deficit; company may struggle to meet short-term obligations.
Average Number of Employees	3	Small workforce, typical for micro-entity.

Interpretation:

• The working capital (current assets minus current liabilities) is deeply negative, showing that short-term debts cannot be covered by available liquid assets. This is akin to a patient having dangerously low vital signs.
• The negative equity suggests accumulated losses have eroded shareholder investment, signaling a serious underlying issue in profitability or capital management.
• The jump in fixed assets indicates capital expenditure but may have strained liquidity.
• The company remains active and filing on time, which is a positive sign of compliance and operational continuity.

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3. Diagnosis: Financial Condition

The company is currently experiencing symptoms consistent with financial strain:

• Liquidity Stress: The working capital deficit indicates the company may face difficulties paying suppliers, creditors, or meeting payroll, akin to a patient with poor circulatory function struggling to deliver oxygen (cash) where needed.
• Solvency Concerns: Negative shareholders’ funds reflect that the company’s liabilities exceed its assets, a critical symptom pointing towards insolvency risk if not addressed.
• Rapid Growth or Investment Phase: The increase in fixed assets suggests recent capital investment, which might be strategic for growth but has worsened liquidity. This could be compared to a patient undergoing intensive treatment with short-term side effects.
• Early Stage Volatility: Founded in 2022, the company is young and likely still establishing its business model; some financial instability can be expected but needs careful management.

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4. Recommendations: Actions for Financial Wellness

To improve financial health and avoid progressing into critical distress, the company should consider the following steps:

• Improve Cash Flow Management:

  • Tighten credit control to accelerate receivables collection.
  • Negotiate extended payment terms with suppliers to ease short-term cash pressure.
  • Prepare detailed cash flow forecasts to anticipate liquidity gaps and plan accordingly.

• Cost Control and Operational Efficiency:

  • Review overhead costs and reduce non-essential expenditure.
  • Assess the return on recent fixed asset investments to ensure they contribute to revenue growth.

• Capital Structure Review:

  • Consider ways to recapitalize, such as shareholder loans, equity injection, or external funding to restore positive net assets.
  • Explore government grants or support schemes available for small businesses in the removals sector.

• Strategic Planning:

  • Develop a clear business plan focusing on sustainable revenue growth and profitability to reverse retained losses.
  • Monitor key performance indicators regularly to detect early signs of stress and react promptly.

• Professional Advice:

  • Engage with financial advisors or insolvency practitioners proactively to discuss options before issues escalate.

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