BEKEMS PROPERTY INVESTMENT LTD

Executive Summary

BEKEMS PROPERTY INVESTMENT LTD has a solid asset base but is burdened by significant liabilities, resulting in tight liquidity and fragile equity. While recent improvements in net assets are positive signs, the company must focus on liquidity enhancement and debt restructuring to ensure long-term financial stability. Proactive financial management will be crucial to maintain healthy cash flow and avoid distress signals.

BEKEMS PROPERTY INVESTMENT LTD - Analysis Report

Company Number: 12809129

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment for BEKEMS PROPERTY INVESTMENT LTD

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1. Financial Health Score: C

Explanation:
The company shows a stable asset base and some positive net assets, but there are clear symptoms of financial strain due to high long-term liabilities nearly matching total assets. The positive trajectory in shareholders' funds is encouraging but still marginal, indicating cautious optimism rather than robust health.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	747,928	A strong asset base, indicating significant investment in property or long-term assets.
Current Assets	8,933	Very low liquidity; minimal short-term assets to cover immediate obligations.
Current Liabilities	752,538	High short-term obligations, almost equal to fixed assets, indicating tight liquidity.
Net Current Assets	7,806	Positive but very small working capital, suggesting limited buffer for day-to-day operations.
Creditors > 1 year (Long term liabilities)	752,538	Large long-term debt nearly equals fixed assets, indicating high gearing/leverage.
Net Assets (Shareholders' Funds)	3,196	Low net equity, but improved from previous negative position, showing some recovery.
Share Capital	100	Nominal capital invested by shareholders, very small relative to company size.
Average Employees	0	No employees, suggesting either very lean operations or outsourced management.

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3. Diagnosis

Symptoms Analysis:

• The company holds substantial fixed assets (likely property investments), which is typical for its SIC code (real estate letting). However, the very high current liabilities and long-term creditors, nearly matching these assets, place the company under financial pressure, akin to a patient with a strong heart muscle but clogged arteries restricting blood flow.
• The marginally positive net current assets indicate the company can just about meet its short-term obligations, but with little room for error or unexpected expenses—this is a symptom of liquidity stress.
• The net assets turning positive in 2024 after previous years of negative or near-zero equity suggest improvement, but the overall capital structure remains fragile.
• Absence of employees implies a low operational cost base but may also indicate limited capacity for growth or asset management.

Overall Financial Condition:
BEKEMS PROPERTY INVESTMENT LTD is in a delicate financial state. It resembles a patient with a chronic condition that is currently stable but requires ongoing careful management. The company's asset-heavy structure is balanced by high debts, meaning profitability and cash flow management are critical to avoid financial distress.

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4. Recommendations

1. Improve Liquidity:

   • Seek to increase current assets by accumulating cash reserves or receivables to build a healthier working capital buffer.
   • Negotiate with creditors to extend payment terms or restructure short-term liabilities to ease immediate cash flow pressure.

2. Debt Management:

   • Explore refinancing options to reduce the burden of long-term creditors or convert some debt into equity to strengthen the balance sheet.
   • Consider gradual repayment plans aligned with rental income or asset sale proceeds.

3. Enhance Financial Monitoring:

   • Implement regular cash flow forecasting and scenario analysis to anticipate liquidity crunches early.
   • Monitor financial covenants if any exist on loans to avoid technical breaches.

4. Operational Efficiency:

   • Even with no employees, ensure property management costs are optimized and revenue streams (rentals) are maximized.
   • Evaluate potential for asset enhancement or diversification to improve income stability.

5. Stakeholder Communication:

   • Maintain transparent communication with lenders and shareholders to build confidence in the company’s recovery path.

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