BELLFRONT PROPERTIES LIMITED

Executive Summary

Bellfront Properties Limited has strengthened its net asset position through investment property appreciation but faces liquidity pressures due to significant short-term liabilities exceeding current assets. Immediate focus on cash flow management and debt restructuring is recommended to improve financial stability and support sustainable growth.

BELLFRONT PROPERTIES LIMITED - Analysis Report

Company Number: 12820632

Analysis Date: 2025-07-19 12:06 UTC

Financial Health Assessment for Bellfront Properties Limited

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1. Financial Health Score: C

Explanation:
Bellfront Properties Limited shows signs of recovery and growth but carries notable financial stress. The company has transitioned from negative net assets and shareholders' funds in previous years to a positive net asset position in 2024, thanks largely to the revaluation of its investment property. However, significant current liabilities exceeding current assets indicate liquidity challenges that need addressing to avoid cash flow distress.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£101,423	Positive net assets reflect overall growth and recovery from previous losses.
Shareholders' Funds	£101,423	Equity is positive, signaling restored shareholder value.
Current Assets	£7,677	Very low current assets relative to liabilities — indicates liquidity risk.
Current Liabilities	£129,382	High short-term obligations create cash flow pressure.
Net Current Assets	-£121,705	Negative working capital ("symptom of liquidity distress").
Fixed Assets (Investment property)	£727,000	Significant fixed asset base with recent revaluation gains.
Long-term Liabilities	£503,872	Substantial long-term debt, manageable if cash flow supports servicing.
Cash at Bank	£4,065	Minimal cash reserves, not enough to cover immediate liabilities.

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3. Diagnosis: Financial Condition Assessment

Bellfront Properties Limited presents a mixed financial health picture:

• Vital Signs: The company’s fixed assets (notably investment property) have appreciated, improving net asset value and equity substantially compared to prior years. This resembles a patient whose core organ (asset base) has strengthened.

• Symptoms of Distress: The company struggles with liquidity, as illustrated by the negative net current assets and minimal cash reserves against sizeable current liabilities. This is akin to a patient with a healthy heart but low blood pressure—stable overall but vulnerable to sudden shocks.

• Debt Load: Long-term liabilities have more than doubled since 2023. While this can be a sign of growth investment, it requires stable cash flows for debt service. The director's loans also form a significant portion of current liabilities, suggesting reliance on internal financing.

• Profit & Loss: Absence of the income statement limits full evaluation, but retained earnings remain negative, indicating prior losses or ongoing expenses exceeding income.

• Compliance and Reporting: The company filed accounts and confirmation statements on time, suggesting good administrative health.

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4. Recommendations

To improve financial wellness, Bellfront Properties Limited should consider the following actions:

• Improve Liquidity ("Boost the Cash Flow")

  • Tighten credit control to accelerate debtor collections.
  • Explore short-term financing or overdraft facilities to cover immediate liabilities.
  • Review operating expenses to reduce cash burn.

• Debt Management ("Reduce the Burden on the Heart")

  • Engage with lenders to restructure long-term debt where possible to ease current liability pressure.
  • Consider phased repayment plans or refinancing to optimize interest costs.

• Enhance Profitability ("Strengthen the Core")

  • Examine rental income streams or property management contracts for potential to increase revenue.
  • Assess investment property portfolio for opportunities to sell underperforming assets to repay debt or boost cash reserves.

• Build Financial Resilience ("Stabilize Vital Signs")

  • Create a rolling cash flow forecast to monitor liquidity and avoid surprises.
  • Seek professional advice on tax planning and deferred tax impacts.

• Transparency and Reporting

  • Consider preparing a summarized profit and loss statement to better track operational performance.

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Summary

Bellfront Properties Limited shows encouraging signs of asset growth and shareholder equity recovery but is experiencing liquidity challenges due to high current liabilities and low cash reserves. Addressing working capital management and debt restructuring will be essential to stabilize cash flow and support sustainable growth. With focused financial management, the company can strengthen its financial health and improve resilience against future economic fluctuations.