Company Number: 12824495

Analysis Date: 2025-07-19 12:44 UTC

1. Risk Rating: MEDIUM

Justification: Beehive State Ltd shows positive net asset growth and stable investment property valuations but also presents significant negative net current assets and a high level of current liabilities relative to cash and debtors, indicating potential liquidity pressure. The company is relatively young, small in scale, and has no audit requirement, limiting financial transparency.

2. Key Concerns:

• Negative Net Current Assets: The company reports net current liabilities of approximately £96k against current assets of £12k, signaling short-term liquidity constraints and potential difficulty meeting immediate obligations.
• High Current Liabilities: Current liabilities are substantial (£226k), nearly 20 times the cash available, which raises concerns about working capital management and the ability to settle short-term debts without refinancing or additional capital.
• Limited Share Capital and Small Scale: With only £1 in share capital and a single employee, the company’s capitalization and operational scale are minimal, increasing dependency on external financing and exposing it to operational risks.

3. Positive Indicators:

• Growing Net Assets: Net assets increased from £6,019 in 2023 to £34,606 in 2024, primarily due to a £36,840 upward revaluation of investment properties, indicating asset value appreciation.
• Investment Property Holdings: Fixed assets consist entirely of investment properties, which have increased in value, suggesting potential for stable long-term income or capital gains.
• Compliance with Filings: There are no overdue accounts or confirmation statements, reflecting good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of current liabilities to assess refinancing risk and cash flow timing.
• Review lease agreements or contracts underpinning the investment property valuations to confirm sustainable income streams.
• Clarify the company’s business plan and strategy for addressing negative working capital and how it intends to fund ongoing operations.
• Assess director experience and background, particularly given recent appointment of a director with significant control, to evaluate management capability.
• Confirm absence of any contingent liabilities or off-balance sheet risks that may impact solvency.