BEEBUG LIMITED

Risk Rating: LOW The company demonstrates a fundamentally sound balance sheet with a healthy current ratio and consistent positive net assets. While there has been a noticeable contraction in equity and an increase in short-term liabilities recently, the overall liquidity position remains robust, and the company has a long, stable operating history. There are no immediate signs of solvency distress or regulatory non-compliance.

Key Concerns: - Contraction in Shareholders' Funds: Net assets and shareholders' funds dropped from £388,877 in 2024 to £314,462 in 2025, a decline of approximately 19%. Without a Profit & Loss account (permitted under micro-entity filing rules), it is unclear whether this reduction is driven by a trading loss, increased administrative costs, or a dividend extraction by the parent company. - Significant Increase in Current Liabilities: Creditors falling due within one year surged from £156,661 to £257,229—a roughly 64% increase year-on-year. While current assets still comfortably cover these liabilities, a shift of this magnitude warrants scrutiny to ensure it does not represent structural cash flow pressure or deferred supplier payments. - Subsidiary Status and Financial Opacity: The company is wholly controlled by Oaktree Systems Ltd (owning >75%). As a micro-entity, BEEBUG LIMITED files filleted accounts, meaning revenue, operating costs, and profit margins are completely opaque. The financial health of this entity is intrinsically linked to the strategies and financial demands of its parent.

Positive Indicators: - Strong Liquidity: Current assets (£530,922) comfortably exceed current liabilities (£257,229), yielding a current ratio of approximately 2.06:1. This indicates the business has more than sufficient short-term resources to meet its obligations. - Operational Longevity: Incorporated in 1983, the company has over 40 years of operating history, suggesting a stable, sustainable business model and resilience through various economic cycles. - Regulatory Compliance: The company is listed as Active, and its accounts and confirmation statements are up to date with no overdue filings. The recent resignations of a director and secretary in December 2025 appear to be standard governance changes rather than red flags.

Due Diligence Notes: - Composition of Current Liabilities: Investigate the nature of the £257,229 current liabilities. In IT service businesses, large current liabilities often represent deferred income (prepaid annual support contracts) rather than trade creditors, which would be a neutral or positive indicator of forward revenue visibility rather than a cash strain. - Parent Company Financials: Conduct a full assessment of Oaktree Systems Ltd. Understanding the parent's leverage, cash flow demands, and group strategy is essential, as BEEBUG LIMITED may be used as a cash generator for the wider group. - Equity Decline: Clarify whether the £74,415 drop in net assets represents a trading loss or a dividend payout to the parent company. A dividend would imply strong historical profitability, whereas a trading loss would require an assessment of margin compression in the education IT sector. - Recent Officer Resignations: Review the circumstances of the resignations of Adrian Laurence David Calcraft and Susan Margaret Calcraft on 2025-12-12 to ensure there are no underlying governance concerns or operational disruptions.