Company Number: 13789247

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ben's Yard Limited shows early signs of financial recovery after initial losses but remains marginally solvent with very limited net assets (£1,203). The company operates in real estate letting, a sector sensitive to economic cycles, and has increased trade debtors and cash balances, indicating growth in operations. However, the tight working capital position and history of negative equity pose risks. Approval is recommended with conditions including close monitoring of liquidity and prompt filing of future accounts to ensure continued improvement.

2. Financial Strength:
   The company transitioned from net liabilities of £86,201 in 2023 to a modest net asset position of £1,203 in 2024. This improvement is driven by increased current assets (£170,986) mainly trade debtors (£125,195) and cash (£28,581), against current liabilities of £169,783. The equity base is minimal with only £1,000 share capital and £203 retained earnings, indicating a fragile capital structure. Absence of fixed assets suggests reliance on leased or operating real estate rather than owned property. Overall, financial strength is weak but improving.

3. Cash Flow Assessment:
   Cash at bank increased from £1,147 to £28,581, a positive liquidity indicator. However, the company’s current liabilities (£169,783) nearly match its current assets (£170,986), resulting in very slim net working capital (£1,203). The large increase in trade creditors (£80,145) and accruals (£71,598) compared to prior year indicates growing obligations that must be managed carefully. The company has no long-term debt reported, which reduces solvency risk but working capital management and debtor collection efficiency are critical to maintain cash flow adequacy.

4. Monitoring Points:

• Continued improvement in net assets and equity base to build financial resilience.
• Debtor aging and collection performance to ensure cash inflows meet or exceed creditor obligations.
• Timely settlement of trade creditors and accruals to avoid supplier disputes or credit downgrades.
• Consistent filing of accounts and confirmation statements to maintain regulatory compliance and transparency.
• Impact of economic conditions on real estate rental demand and occupancy rates given sector sensitivity.