BEN BENNETT JR PROPERTIES LIMITED

Executive Summary

Ben Bennett Jr Properties Limited exhibits significant financial distress with large negative working capital and negative equity as of the latest accounts. The company’s ability to meet short-term liabilities and service debt is highly questionable, and its financial trajectory is deteriorating. Credit facilities are not recommended without material improvements in liquidity and capital structure.

BEN BENNETT JR PROPERTIES LIMITED - Analysis Report

Company Number: 12587612

Analysis Date: 2025-07-20 15:10 UTC

1. Credit Opinion: DECLINE
   Ben Bennett Jr Properties Limited presents significant credit risk due to its deteriorating financial position. The company has large and growing current liabilities (£1.34m in 2024) vastly exceeding current assets (£11.4k), resulting in a severe negative working capital position (net current liabilities of £-1.33m). Net assets are negative (£-38.3k), indicating an erosion of equity and potential insolvency concerns. The company’s financial trajectory is negative, with a shift from positive net assets in 2023 (£18.6k) to negative in 2024. This suggests deterioration in financial health and limited capacity to meet debt obligations. Without substantial capital injection or restructuring, the company is unlikely to service new or existing credit facilities reliably.

2. Financial Strength:
   The balance sheet shows weak financial strength. Fixed assets (investment property) have increased in value to £1.3m, but this is offset by substantial current liabilities, predominantly other creditors (£1.34m). The company’s net asset deficit and negative equity position are red flags. The lack of retained earnings (large negative loss reserves) indicates sustained losses or write-downs. The small issued share capital (£190) provides little buffer against financial shocks. The company’s classification as a small private limited company with no employees and modest debtor balances also limits operational scale and financial resilience.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash balances are low (£8.3k) relative to current liabilities (£1.34m), and there is no evidence of liquid assets that can be quickly converted to meet short-term obligations. The company’s large negative net current assets position highlights a working capital deficiency that impairs operational cash flow. The absence of a profit and loss statement in the filing limits detailed cash flow analysis, but the sharp increase in creditors suggests reliance on external financing or delayed payments to suppliers. Cash flow risks are high, and the company’s ability to generate sufficient operating cash to cover liabilities is questionable.

4. Monitoring Points:

• Monitor changes in working capital and current liabilities, particularly any reduction in creditor balances.
• Track updates to net asset position and equity reserves for signs of further deterioration or improvement.
• Review subsequent filings for profit and loss data to assess operational profitability and cash generation.
• Watch for any director changes or restructuring announcements that might impact financial strategy.
• Evaluate the fair value and liquidity of investment property assets given their significant balance sheet weighting.