BENJAMINTHEDEV LTD

Executive Summary

BenjaminTheDev Ltd demonstrates improving equity and asset investment but carries significant lease liabilities and low cash reserves, presenting liquidity risk. Credit approval is recommended on a conditional basis with emphasis on close monitoring of cash flow, debtor collection, and debt servicing capacity. The company’s growth trajectory is positive but financial resilience remains vulnerable to cash flow fluctuations.

BENJAMINTHEDEV LTD - Analysis Report

Company Number: 13802772

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BenjaminTheDev Ltd shows signs of improving financial strength with net assets increasing substantially from £1,358 in 2023 to £19,661 in 2024. However, the company currently carries significant medium- and long-term liabilities related to finance lease obligations totaling £44,635 (£7,534 current + £37,101 non-current), which exceed its reported cash and short-term assets. The company is relatively young (incorporated in late 2021) and operates in software development, a sector with growth potential but also volatility. The presence of director loans on the balance sheet, with an aggregate of £27,633 owed to directors, indicates reliance on insider funding. Given these factors, credit approval should be conditional on ongoing monitoring of cash flow and debt servicing ability.

2. Financial Strength:

• Tangible fixed assets have increased significantly to £37,350, reflecting investment in motor vehicles and computer equipment, suggesting capacity expansion.
• Current assets are modest (£12,432) and largely composed of debtors (£9,532) with only £2,900 in cash.
• Current liabilities (£13,905) exceed cash and are mainly lease obligations and tax liabilities, indicating short-term liquidity pressure.
• Net current assets reported as £26,337 likely include treatment of lease liabilities and other adjustments; however, the notes show negative net current assets excluding long-term financing.
• Shareholders’ funds have increased considerably, driven by profit retention (£19,561 P&L reserve), indicating growth in equity.
• Deferred tax liability has increased to £6,925, possibly due to accelerated capital allowances on new assets.

3. Cash Flow Assessment:

• Cash on hand has decreased significantly from £8,466 to £2,900 despite asset purchases, indicating cash outflow toward fixed assets and possibly debt servicing.
• Debtors have increased substantially, which may impact cash conversion cycles and working capital management.
• Reliance on finance leases and director loans suggests external financing constraints.
• Average employee count remains low (2), indicating limited payroll burden but also potential operational scale challenges.
• The company’s ability to meet short-term obligations from operating cash flow should be monitored closely, as current cash levels are low relative to liabilities.

4. Monitoring Points:

• Liquidity ratios, especially current ratio and quick ratio, to ensure short-term obligations can be met without reliance on further director loans or external financing.
• Timeliness and collectability of debtors to improve cash inflows.
• Profitability trends and cash flow from operations to confirm sustained business growth and debt servicing capability.
• Impact of finance lease obligations on cash flow and potential refinancing risks.
• Director loan accounts and any changes in insider funding levels.
• Compliance with filing deadlines and any changes in company status or key management personnel.