BEMBERERO LTD

Executive Summary

BEMBERERO LTD shows significant financial weakening in its latest accounts, with net assets nearly depleted and negative working capital indicating liquidity strain. While still active and compliant with filings, the company’s ability to service debt is uncertain without additional financial support or operational turnaround. Credit approval is conditional, requiring close monitoring of cash flows and creditor payments.

BEMBERERO LTD - Analysis Report

Company Number: 13226820

Analysis Date: 2025-07-29 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BEMBERERO LTD is an active micro private limited company in the construction installation sector. The company has experienced a significant deterioration in financial position in the latest financial year ending February 2025, with net assets declining sharply from £25,268 in 2024 to only £752 in 2025. This erosion of equity and the presence of long-term creditors (£9,576) raise concerns about financial stability. However, the company is still operational and has no overdue filings. Given these factors, credit approval can be considered but should be conditional on close monitoring and potentially requiring additional security or guarantees.

2. Financial Strength
   The balance sheet shows a decline in net assets from £25,268 to £752 over one year, primarily due to a reduction in current assets from £39,212 to £16,531 and an increase in creditors due after more than one year from £4,256 to £9,576. Fixed assets increased modestly, but the company’s net current assets have turned negative (-£10,747), indicating liquidity pressure. Shareholders' funds are minimal, suggesting limited buffer to absorb financial shocks. The company’s capital is minimal (£1 share capital), and the controlling director holds 75-100% ownership, implying concentrated control but also potential risk if personal financial backing is insufficient.

3. Cash Flow Assessment
   Current liabilities exceed current assets, resulting in negative net current assets which imply working capital deficiency. This suggests potential difficulties in meeting short-term obligations without external funding or improved cash management. The reduction in average employees from 2 to 1 may indicate cost-cutting measures. The absence of detailed cash flow statements limits a full liquidity analysis, but the negative working capital is a red flag for cash flow stress.

4. Monitoring Points

• Track quarterly management accounts to assess improvement or further deterioration in liquidity and net assets.
• Monitor aging of trade payables and receivables to detect any late payments or collection issues.
• Watch for any further increases in long-term debt or delayed payments to creditors.
• Review any director loans or personal guarantees that may support the company’s creditworthiness.
• Confirm no overdue statutory filings or changes in company control that could affect credit risk.