BELVEDERE FARM LTD

Executive Summary

Belvedere Farm Ltd is a start-up real estate letting company with a very modest initial financial base and no trading history beyond its first year. The company currently holds minimal net assets and liquidity but shows no signs of distress or overdue compliance. Conditional credit approval is appropriate, contingent on monitoring operational cash flows and financial progression as the business develops.

BELVEDERE FARM LTD - Analysis Report

Company Number: 14718925

Analysis Date: 2025-07-29 17:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Belvedere Farm Ltd is a newly incorporated private limited company (since March 2023) operating in the real estate letting sector. The company has filed its first abridged financial statements showing minimal net assets and a marginal positive working capital position. While the company currently demonstrates very limited financial resources and no trading history beyond its initial period, there is no indication of distress or overdue filings. Approval is recommended on a conditional basis, requiring ongoing monitoring of financial performance and cash flow development as the business establishes its operations and revenue streams.

2. Financial Strength: At 31 March 2024, the company reported total current assets of £60,478, primarily debtors (£60,000), with a nominal cash balance (£478). Current liabilities stand at £59,494, resulting in a small net current asset position of £984 and net assets of £984. Shareholders' funds mirror net assets and consist almost entirely of retained earnings built in the first accounting period. The balance sheet is very light with no fixed assets and minimal equity. This reflects an early-stage business with limited capitalisation and working capital buffer. The financial position is fragile but not uncommon for a start-up entity in property letting.

3. Cash Flow Assessment: Cash at bank is notably low at £478, indicating limited immediate liquidity. However, the large debtor balance of £60,000 suggests receivables are due soon, which supports near-term working capital needs. The close matching of current assets and liabilities implies the company is just covering short-term obligations but has limited cushion to absorb delays or unexpected expenses. Going forward, monitoring debtor collections and ensuring timely cash conversion will be critical to maintain liquidity. The company currently employs no staff, which reduces cash burn risk.

4. Monitoring Points:

• Revenue generation and turnover growth in subsequent accounting periods.
• Timeliness of debtor collections and cash conversion cycles.
• Development of net current assets and strengthening of the equity base.
• Any material changes in liabilities or new debt facilities.
• Director and shareholder activity, particularly any capital injections or changes in control.
• Compliance with filing deadlines and absence of creditor disputes or enforcement action.