BEECHCROFT SUPPORT LIMITED

Executive Summary

Beechcroft Support Limited exhibits deteriorating financial health marked by negative net assets and significant liabilities, raising serious concerns about its ability to meet credit obligations. The company’s micro-entity status and limited operational scale further constrain financial resilience. Given current financials, credit approval is not recommended without substantial mitigating factors or guarantees.

BEECHCROFT SUPPORT LIMITED - Analysis Report

Company Number: 12588658

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: DECLINE
   Beechcroft Support Limited’s financial data shows a deteriorating balance sheet position with net liabilities as of the latest accounts. The company’s net assets have moved from positive figures in prior years to a negative £9,380 at 31 March 2024, indicating financial distress. Current liabilities exceed current assets, and there are significant creditors due after more than one year (£12,786). This suggests the company may struggle to meet its debt obligations on time, raising concerns over its ability to service new credit facilities. The limited scale of operations (micro-entity) and minimal share capital (£100) further limit the company’s financial resilience. Additionally, with only one employee and limited trading history since incorporation in 2020, business continuity and management depth remain uncertain.

2. Financial Strength:
   The company’s balance sheet reveals weakening financial strength. While net current assets remain positive (£3,406), total net assets are negative due to long-term liabilities outweighing total assets. This negative equity position reflects accumulated losses or debt overhang. The small size of the business limits asset coverage and equity buffers. The presence of long-term creditors and negative net assets potentially signals liquidity pressure and solvency risk. Shareholders’ funds have eroded from prior years’ levels, which is a negative signal for credit extension.

3. Cash Flow Assessment:
   Reported current assets are low (£5,452), and current liabilities (£2,046 short-term creditors plus £12,786 long-term creditors) are substantial. The net current assets figure in accounts appears inconsistent with the given creditors’ breakdown, but overall working capital is constrained. The company’s ability to generate sufficient operating cash flow to cover liabilities is questionable, especially given minimal employee count and unclear trading activity. There is no indication of cash reserves or positive operating cash flow to support immediate liquidity needs.

4. Monitoring Points:

• Monitor changes in net asset position and equity injections if any.
• Track timely settlement of both short-term and long-term creditors to avoid default.
• Review turnover and profitability trends to assess operational cash generation.
• Assess any changes in director or shareholder structure that may affect support.
• Watch for any overdue filings or signs of insolvency proceedings.