BENSON & MCADAM PROPERTIES LTD

Executive Summary

Benson & McAdam Properties Ltd operates in real estate letting with a leveraged balance sheet and working capital deficit mitigated by director support. The company is marginally solvent with improving profitability but constrained liquidity. Conditional credit approval is recommended subject to continued director backing and close monitoring of cash flows and asset valuations.

BENSON & MCADAM PROPERTIES LTD - Analysis Report

Company Number: 13755788

Analysis Date: 2025-07-20 18:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Benson & McAdam Properties Ltd is a small private limited company operating in real estate letting. The company shows a small net liability position (£1,541 deficit in net assets at 31/10/2023) but has directors who have confirmed ongoing support for at least twelve months. The business carries significant long-term debt (£56,230 bank loan) relative to its asset base (£100,297 investment property). Current liabilities exceed current assets by £45,608 indicating a working capital deficit. The company is relatively young and reported a small profit in the latest year, improving retained earnings by £1,113. However, liquidity constraints and the negative equity position require close monitoring. Credit approval is possible if directors’ support remains firm and if the company can demonstrate improving cash flow and profitability.

2. Financial Strength:
   The company holds a single investment property valued at £100,297, which constitutes the majority of its assets. Net current liabilities stand at £45,608, primarily due to directors’ current accounts balances (£47,313), which can be considered related-party funding rather than external debt. Long-term bank loans of £56,230 are significant for the company's size, causing net liabilities on the balance sheet. Shareholders’ funds remain negative but have improved from prior years. The absence of other fixed assets or significant current assets highlights limited diversification of assets. The financial structure is leveraged and borderline solvent, relying heavily on director support and property valuation stability.

3. Cash Flow Assessment:
   Cash on hand is minimal (£3,705), suggesting limited liquidity buffers. The company’s working capital deficit signals potential short-term cash flow pressure. Directors’ current accounts, which represent loans from the directors, form the bulk of current liabilities, indicating reliance on director funding to meet obligations. The company shows a modest profit in the latest period, which is a positive sign, but the lack of disclosed income statement details limits assessment of operational cash generation. Overall, cash flow appears constrained, with liquidity dependent on director funding and rental income from the investment property.

4. Monitoring Points:

• Cash flow trends and ability to meet short-term liabilities without additional director loans.
• Profitability and retention of earnings to improve equity position.
• Stability and valuation of investment property assets in the market.
• Directors’ ongoing financial support and any changes in related party funding.
• Compliance with bank loan covenants and repayment schedules.
• Filing of future accounts and confirmation statements on time to maintain transparency.