Company Number: 13195712

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: DECLINE
   Bellabertie Management Ltd shows significant net liabilities (£135k) and net current liabilities (£135k) at the year-end, indicating a weak financial position. The company’s current liabilities substantially exceed current assets, primarily driven by large amounts owed to related parties. While these related-party loans are interest-free and repayable on demand, the reliance on such informal funding signals financial distress and limited external borrowing capacity. The company is also loss-making, as indicated by the negative retained earnings. Given the limited operating scale (one employee) and minimal equity (£4 share capital), the risk of default on new credit facilities is high without a clear plan for profitability or external capital injection.

2. Financial Strength:
   The balance sheet reflects poor financial health. Total current assets of £8.5k contrast sharply with current liabilities of £143.8k, yielding a large working capital deficit. Net liabilities of £135k indicate the company’s liabilities exceed its assets. The company has no fixed assets reported. The substantial amounts owed to related parties (£140.5k) dominate liabilities, suggesting the company is highly dependent on related-party funding rather than commercial sources. The minimal share capital and accumulated losses reflect a fragile equity base with no buffer against financial shocks.

3. Cash Flow Assessment:
   Cash at bank dropped significantly from £29k in 2023 to £1.5k in 2024, indicating cash burn. Despite some increase in debtors from £2.5k to £7k, the company’s cash flow position is weak. The large creditor balances, especially to related parties, may indicate cash flow constraints and dependency on shareholder or related-party support. The company has limited liquidity to service external debt or operational expenses without further capital injections.

4. Monitoring Points:

• Track related-party balances to assess if these loans remain interest-free and repayable on demand or if formalisation is required.
• Monitor cash flow trends and working capital improvements to ensure operational viability.
• Watch for any changes in operating profitability or new capital introductions that could strengthen equity.
• Review director and shareholder actions regarding financial support and strategic plans to return to profitability.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory penalties.