BEKN ENTERPRISES LTD

Executive Summary

BEKN Enterprises Ltd is a young real estate company with significant fixed assets but currently negative net assets and weak liquidity. While operational compliance is satisfactory, the financial position is fragile, requiring credit approval with conditions and close monitoring of cash flow and debt servicing. Improvements in working capital and profitability will be essential to mitigate credit risk going forward.

BEKN ENTERPRISES LTD - Analysis Report

Company Number: 15086596

Analysis Date: 2025-07-29 16:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BEKN Enterprises Ltd is a newly incorporated company (less than two years old) operating in the real estate letting sector. The financials show a negative net asset position (-£11,429) and net current liabilities of £1,491. The company has significant long-term liabilities (£159,842) relative to its tangible fixed assets (£149,904). Cash on hand is minimal (£56), indicating tight liquidity. However, there are no overdue filings or director disqualifications, and the business appears compliant. Credit approval could be considered with conditions such as personal guarantees, close monitoring, and a clear repayment plan given the current weak equity and cash position.

2. Financial Strength:
   The company’s balance sheet reflects a negative equity position, meaning liabilities exceed assets. The tangible fixed assets (mainly land and buildings) are substantial (£149,904) but are offset by long-term creditors (£159,842), resulting in net liabilities. The deficit in shareholders’ funds and retained losses indicate the company is in an early investment or loss phase, common for startups acquiring assets. The lack of current assets beyond minimal cash and the imbalance between assets and liabilities suggest financial fragility.

3. Cash Flow Assessment:
   Cash reserves are negligible (£56), and net current liabilities are negative, indicating insufficient working capital to cover short-term obligations. The small amount of trade creditors (£34) suggests limited operational payables, but the liquidity risk remains high. The company currently relies on long-term funding, and absence of significant cash inflows or reserves could challenge day-to-day operations and debt servicing unless supported by external funding or shareholder injections.

4. Monitoring Points:

• Liquidity improvements: Watch cash flow statements and bank balances regularly.
• Debt servicing: Ensure scheduled repayments on long-term creditors are met without default.
• Profitability trends: Track future income statements to confirm movement towards profitability and equity restoration.
• Asset valuations: Monitor fixed asset values and any impairment risks.
• Director and ownership changes or new capital injections that could alter financial stability.