Company Number: 13667902

Analysis Date: 2025-07-29 17:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bekson Construction Ltd is an active, micro-entity operating in construction-related services since late 2021. The company shows limited net assets (£938 as of 31 October 2023) and weakened liquidity compared to the prior year, with net current liabilities of £15,702 driven by current liabilities exceeding current assets. The introduction of £10,900 of long-term creditors indicates increased leverage. Although the company remains operational with no overdue filings and a sole experienced director, the small scale and recent deterioration in working capital suggest caution. Approval is recommended subject to periodic review of cash flow and debt management to ensure ongoing ability to meet obligations.

2. Financial Strength:
   The balance sheet reflects a micro-sized entity with very limited fixed assets (£5,740), mostly motor vehicles, and modest current assets (£17,705). Current liabilities rose to £33,407, resulting in negative net current assets of £15,702. The company also shows £10,900 in long-term creditors, which further strains net assets down to £938 from £2,209 last year. This decline signals increased financial risk and reduced buffer against unexpected expenses. Shareholders’ funds remain positive but minimal, indicating thin equity support. Overall, the financial strength is weak and vulnerable to adverse changes.

3. Cash Flow Assessment:
   The company’s liquidity position has deteriorated significantly. Current assets have halved from prior year (£38,308 to £17,705), while current liabilities remain high. Negative net current assets imply reliance on external financing or cash inflows to cover short-term obligations. The presence of long-term creditors suggests the company has taken on debt but the impact on cash flow is unclear without detailed income or cash flow statements. The small workforce (3 employees) and micro-entity status limit financial flexibility. Close monitoring of cash flow forecasts and working capital management is essential.

4. Monitoring Points:

• Working capital trends and ability to maintain positive net current assets.
• Timely servicing of both short-term and long-term creditors, especially new long-term debt.
• Turnover and profitability indicators to assess operational sustainability.
• Director’s conduct and any changes in ownership/control or financial strategy.
• Compliance with filing deadlines and regulatory obligations.