BEEBUG LIMITED - Risk Analysis Report

1. Risk Rating: LOW

Justification: BEEBUG Limited demonstrates a consistently strengthening financial position with net assets growing from £61,567 (2016) to £388,877 (2024). Cash reserves of £392,316 substantially exceed total liabilities of £160,001, eliminating immediate solvency concerns. The company has maintained continuous profitability, evidenced by consistent growth in shareholders' funds, and operates in a stable niche market with long-standing tenure since 1983.

2. Key Concerns

Concern 1: Group Structure Complexity and Potential Misalignment

The PSC register identifies Oaktree Systems Ltd as owning more than 75% of shares (listed twice, which may be a filing error), while Note 10 of the accounts states the ultimate parent is Store IT Solutions Ltd. This discrepancy raises questions about the actual control structure and whether inter-company arrangements could impact BEEBUG's financial autonomy. The £6,000 owed by group undertakings and £40 owed to group undertakings, while small, confirm active related-party transactions.

Concern 2: Recent Director Changes

Two officers resigned on 12 December 2025 (Adrian Laurence David Calcraft, director, and Susan Margaret Calcraft, secretary). While director changes are routine, the simultaneous departure of two individuals with the same surname suggests a potential shift in governance or ownership dynamics. The timing—shortly after the 31 December 2024 year-end—warrants monitoring for further structural changes.

Concern 3: Limited Financial Transparency (Micro Entity Status)

As a micro entity, BEEBUG files minimal accounts with no profit & loss statement, no cash flow statement, and heavily reduced disclosures. This makes it impossible to assess revenue trends, margins, or operating costs. Trade debtors fell from £160,040 (2023) to £93,751 (2024)—a 41% decline that could indicate improved collections, reduced revenue, or a change in billing practices, but cannot be determined from available data.

3. Positive Indicators

• Exceptional Liquidity Position: Cash of £392,316 represents approximately 2.45x cover of total liabilities (£160,001). The company could settle all creditors from cash reserves without liquidating any other assets.

• Consistent Capital Accumulation: Net assets have grown every year in the available history, from £61,567 (2016) to £388,877 (2024). The P&L reserve has grown from approximately £56,067 to £378,377 over the same period, indicating sustained retained profitability without reliance on capital injections.

• Low Leverage: The balance sheet shows no long-term debt. Creditors are predominantly operational (trade creditors £92,021, corporation tax £16,053, other taxation/social security £46,595). This structure suggests the business is self-funding.

• Established Market Position: Incorporated in 1983, the company has over 40 years of operating history in ICT support for primary schools—a resilient public-sector niche with recurring contract requirements.

• Stable Workforce: Employee count has remained at 13 for both 2023 and 2024, suggesting low staff turnover and operational consistency.

• Regulatory Compliance: All filings are current and not overdue. The company appears to meet its statutory obligations promptly.

4. Due Diligence Notes