Company Number: 12586499

Analysis Date: 2025-07-20 15:16 UTC

1. Credit Opinion: APPROVE
   Belsar Building Management Ltd demonstrates a solid financial base with positive net assets and working capital, indicating capacity to meet short-term obligations. The company has no overdue filings, showing good compliance and governance. Although the business is relatively young (incorporated in 2020), it shows stable asset management and no signs of distress. Director ownership concentration is high but typical for small private companies, and there is no indication of director misconduct. Overall, the company appears creditworthy for modest credit facilities, subject to routine monitoring.

2. Financial Strength:
   The balance sheet shows net assets of £25,225 as of 31 March 2024, slightly down from £27,202 in the prior year, reflecting a modest decline but still a positive equity position. Fixed assets are minimal (£1,330), typical for a service business focused on real estate management. Current assets stand at £39,450 with cash of £15,858, while current liabilities are £7,665, resulting in strong net current assets of £31,785. The company’s shareholders’ funds are almost entirely composed of retained profits, evidencing accumulated earnings rather than capital injection.

3. Cash Flow Assessment:
   The liquidity position is adequate with a current ratio (current assets/current liabilities) of approximately 5.15, indicating ample short-term coverage. However, cash at bank decreased significantly from £27,249 in 2023 to £15,858 in 2024, warranting attention to cash flow management. Debtors have also reduced, which might suggest tighter credit control or lower sales. The director’s loan account liability reduced from £14,833 to £5,070, which is positive since reliance on director funding is decreasing. Overall, working capital is healthy, but cash flow should be monitored for seasonality or collection issues.

4. Monitoring Points:

• Continued profitability and ability to maintain or grow net assets, especially given the slight decline in 2024.
• Cash balances and debtor collections to ensure liquidity remains robust.
• Changes in director loan account balances for any sudden increases which might indicate cash flow pressure.
• Any changes in the property management market or regulatory environment that could affect revenue streams.
• Timely filing of accounts and confirmation statements to maintain compliance and governance standards.