BEESLEY LETTINGS LTD

Executive Summary

BEESLEY LETTINGS LTD shows signs of financial stress with negative net assets and insufficient current assets to cover liabilities, indicating liquidity and solvency challenges. The company’s reliance on debt and low liquid resources suggest the need for capital restructuring and improved cash flow management. Timely financial and operational adjustments are critical to stabilize and improve its financial health.

BEESLEY LETTINGS LTD - Analysis Report

Company Number: 13549774

Analysis Date: 2025-07-29 19:24 UTC

Financial Health Assessment of BEESLEY LETTINGS LTD

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1. Financial Health Score: D

Explanation:
BEESLEY LETTINGS LTD currently shows signs of financial distress, primarily evidenced by negative net assets and persistent net current liabilities. The company’s capital structure is weak, with liabilities exceeding assets, indicating a fragile financial position. The lack of profitability data (no P&L provided) limits full diagnosis, but the balance sheet "symptoms" suggest challenges in liquidity and solvency. Hence, a grade of D reflects a weak but not yet critical condition.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£290,023	Represents property holdings, likely investment properties. Stable over recent years.
Current Assets	£3,258	Very low cash or receivables; limited liquid resources available to meet short-term obligations.
Current Liabilities	£5,171	Short-term debts slightly higher than current assets, causing negative net working capital.
Net Current Assets	-£1,913	Negative working capital — symptom of liquidity strain, unable to cover short-term debts fully.
Creditors (Due after 1 Yr)	£291,960	Large long-term liabilities, mostly loans secured against properties.
Net Assets (Shareholders' Funds)	-£4,500	Negative equity indicating liabilities exceed total assets — a sign of financial distress.
Loans	£165,695 (Paragon Bank) + £91,936 (Director) + £39,500 (Related Party)	Significant debt load, with some interest-free loans from related parties.
Employees	0	No staff expense burden, but also no operational workforce.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Concerns: The company’s cash and current assets are insufficient to meet immediate liabilities, as shown by negative net current assets (-£1,913). This "symptom" suggests potential short-term cash flow difficulties in meeting bills or creditor demands.

• Solvency Pressure: Negative net assets (-£4,500) mean the company owes more than it owns. This “underlying health” issue points to solvency risk, where the company’s total debts surpass its asset base, potentially threatening long-term viability if uncorrected.

• Asset Dependency: The fixed assets are substantial (£290k), reflecting property investments typical in real estate lettings. However, these are illiquid and tied up, limiting their use for immediate financial relief.

• Debt Structure: The company carries significant loans, including a large bank loan secured against properties and interest-free loans from the director and related party. While interest-free loans reduce immediate financial burden, the overall debt level is high relative to net asset value.

• Operational Scale: With zero employees and limited current assets, the company appears to operate primarily as a property holding and letting vehicle rather than an active trading business. This limits revenue streams and cash inflows, placing more pressure on assets and financing arrangements.

• Filing and Compliance: The company is up to date with accounts and confirmation statement filings, showing good compliance and governance “vital signs.”

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity: Consider restructuring short-term liabilities or negotiating payment terms with creditors to alleviate immediate cash flow pressure. Increasing cash reserves through rental income optimization or asset sales could help.

• Capital Injection: The negative equity position suggests the need for fresh capital, either through additional shareholder investment or converting director/related party loans into equity to strengthen the balance sheet.

• Debt Management: Engage with lenders for potential refinancing to extend maturities or reduce interest costs. Explore options to reduce reliance on high debt through asset disposals or alternative financing.

• Operational Review: Since the company has no employees, focus on maximizing rental yields and controlling operating expenses. Review the portfolio for underperforming assets that could be sold to improve liquidity.

• Financial Reporting: Prepare and file a profit and loss account in future filings to provide a clearer picture of operational performance, aiding better diagnosis and decision-making.

• Monitor Early Warning Signs: Regularly track working capital and solvency ratios to detect worsening conditions early, similar to routine health check-ups.

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Medical Analogy Summary

BEESLEY LETTINGS LTD exhibits "symptoms of financial distress" such as negative net assets and poor liquidity, akin to a patient with compromised vital signs. The company's "financial heartbeat" is weak, with insufficient liquid resources to cover immediate obligations and a "capital deficiency" indicating underlying structural issues. Without intervention—such as a "capital transfusion" (equity injection) and "debt management therapy"—the prognosis could worsen, potentially leading to insolvency.

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