BENEDICT DEVELOPMENTS LTD

Executive Summary

Benedict Developments Ltd exhibits a high risk profile due to negative net assets and significant liabilities exceeding both current assets and total assets. The company’s short history and micro-entity status limit its financial resilience, raising solvency and liquidity concerns. While compliance filings are up to date, further scrutiny of creditor arrangements and operational cash flows is essential to assess ongoing viability.

BENEDICT DEVELOPMENTS LTD - Analysis Report

Company Number: 14512612

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH

Justification: The company shows a negative net asset position (£-16,370) with liabilities exceeding assets primarily due to significant long-term creditors (£383,463) and current liabilities (£476,874) exceeding current assets (£32,260). This indicates solvency concerns as liabilities outweigh assets. The micro-entity scale and short operating history (incorporated Nov 2022) limit financial resilience and operational track record.

2. Key Concerns:

• Negative net assets suggest the company is technically insolvent on a balance sheet basis.
• Current liabilities (£476,874) vastly exceed current assets (£32,260), indicating poor liquidity and potential cash flow issues.
• Significant creditor balances falling due after one year (£383,463) pose refinancing or repayment risk given limited equity buffer.

3. Positive Indicators:

• The company is active, with no overdue filings or compliance issues noted.
• Directors have fulfilled filing obligations timely, showing adequate governance adherence.
• The business operates in real estate management and trading, which can generate recurring fee income, though this is unproven here.

4. Due Diligence Notes:

• Investigate the nature and terms of creditors—are these related party loans, bank debt, or trade creditors?
• Review cash flow forecasts and working capital management plans to assess operational viability.
• Assess revenue generation, profitability, and contract backlog since incorporation to understand sustainability.
• Confirm any contingent liabilities or off-balance sheet commitments.
• Clarify directors’ plans to restore solvency or raise capital given negative equity.