BESAD ESTATES LTD

Executive Summary

Besad Estates Ltd is currently in a financially weak position with negative net assets and significant working capital deficits. The company’s liquidity constraints and lack of operational scale present high credit risk, warranting a decline of credit facilities at this time. Close monitoring of capital structure and liquidity improvements is essential before reconsidering credit exposure.

BESAD ESTATES LTD - Analysis Report

Company Number: 14070343

Analysis Date: 2025-07-29 16:51 UTC

1. Credit Opinion: DECLINE
   Besad Estates Ltd exhibits a weak financial position with negative net assets of £20,758 as of 30 April 2024. The company’s current liabilities (£575k) substantially exceed current assets (£63k), resulting in a large working capital deficit of over £511k. This signals poor liquidity and an inability to meet short-term obligations. The negative equity position indicates accumulated losses or funding gaps, raising concerns about the company’s capacity to service debt and sustain operations without additional capital injection. Given the micro-entity scale and absence of revenue or cash flow data, credit risk is elevated, and approval for credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows a fixed asset base of £491k, presumably real estate holdings, but these are heavily leveraged or encumbered since total liabilities exceed assets. The net asset deficit and negative shareholders’ funds reflect financial distress or undercapitalization. No retained earnings or reserves are reported, and the company’s small scale (micro category) limits financial flexibility. The absence of employees and minimal current assets indicate a lack of operational scale and cash buffers.

3. Cash Flow Assessment:
   Current liabilities being nearly nine times current assets highlight critical liquidity constraints. There is no evidence of cash or equivalents sufficient to cover short-term debts, suggesting potential payment difficulties. Negative working capital of £511k is a significant red flag, implying reliance on external funding or asset disposals to meet obligations. Lack of disclosed revenues or profit margins further complicates cash flow predictability.

4. Monitoring Points:

• Track any capital injections or shareholder loans to improve equity and liquidity.
• Monitor changes in current liabilities and ability to reduce them or extend payment terms.
• Watch for filing of subsequent accounts for signs of operational revenue and profit generation.
• Observe director changes or ownership structure shifts that might impact governance or financial support.
• Review any related party transactions or asset disposals to understand cash flow sources.