BELLAVIEW POINT LTD

Executive Summary

Bellaview Point Ltd is a newly established micro-entity with a weak financial position characterized by significant current liabilities exceeding current assets and negative net equity. The company’s liquidity constraints and lack of proven cash flow generation present a high credit risk, leading to a recommendation to decline credit facilities at this time. Close monitoring of liquidity and any capital support will be critical for future reassessment.

BELLAVIEW POINT LTD - Analysis Report

Company Number: 14911078

Analysis Date: 2025-07-29 19:03 UTC

1. Credit Opinion: DECLINE
   Bellaview Point Ltd’s financials as of 30 June 2024 reveal a weak credit profile. The company shows net current liabilities of £1.6 million and negative net assets of approximately £103k despite holding fixed assets valued at £1.5 million. The significant current liabilities exceeding current assets by a wide margin indicate liquidity constraints and potential difficulty in meeting short-term obligations. The negative net asset position suggests that the company is technically insolvent on a balance sheet basis. Given the company’s very recent incorporation (June 2023) and micro-entity status, it lacks a proven track record to offset these concerns. Without clear evidence of incoming cash flows or additional capital support, the company’s ability to service debt or honor commercial agreements appears limited at this stage.

2. Financial Strength:
   The balance sheet is heavily skewed toward fixed assets (£1.5 million), most likely real estate given the SIC code (68100 - buying and selling of own real estate). However, current liabilities of £1.66 million substantially exceed current assets of £51k, resulting in a large working capital deficit (-£1.6 million). This points to a liquidity crunch and raises concerns about short-term financial resilience. The minimal equity base (£103k negative net assets reported as negative capital and reserves) reflects initial funding but insufficient net worth to absorb losses or support growth. The company’s asset base is not readily liquid, which amplifies risk in a downturn or if creditors demand immediate repayment.

3. Cash Flow Assessment:
   Current assets are low and primarily likely to consist of cash or receivables, but they are dwarfed by current liabilities. This mismatch signals cash flow strain. The company has only two employees, implying low operating expenses, but no detailed income or cash flow statement is provided to assess operational cash generation. The negative working capital position means the company may be reliant on external financing or asset sales to meet short-term obligations. Liquidity risk is elevated, and available working capital is insufficient to cover liabilities due within the next 12 months.

4. Monitoring Points:

• Track quarterly cash flow statements and bank balances for signs of improving liquidity or worsening cash flow stress.
• Monitor changes in current liabilities and asset disposals that might affect solvency.
• Review any new capital injections or shareholder loans that could shore up the balance sheet.
• Watch for timely filing of next accounts and confirmation statements to ensure compliance and transparency.
• Assess director and shareholder activity for indications of strategic shifts or financial restructuring.