BESPA HOLDINGS LIMITED

Executive Summary

Bespa Holdings Limited is a recently incorporated holding company with a weak liquidity position and minimal net assets, reliant entirely on income from its subsidiary. While regulatory filings are current and ownership is clear, the company’s large short-term liabilities and loan repayable on demand pose significant solvency risks. Further due diligence on the subsidiary’s financial health and loan covenants is essential to fully assess the company’s financial stability.

BESPA HOLDINGS LIMITED - Analysis Report

Company Number: 14457754

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency and liquidity concerns, evidenced by a large negative net current asset position (£-338,220) and current liabilities (£338,738) vastly exceeding current assets (£518). Despite positive total fixed assets via investments (£402,000), the company’s net assets are minimal (£100), indicating a highly leveraged and fragile financial position.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities exceed current assets by over £338k, risking inability to meet short-term obligations.
• High Leverage and Debt Structure: Presence of a substantial loan repayable on demand (£63,680 MBO Loan) secured by debenture with fixed and floating charges, which could be called if covenants are breached, increasing default risk.
• Lack of Operating Revenue and Dependence on Subsidiary: The company has no turnover and derives income solely from its subsidiary, suggesting operational inactivity and dependence on external performance.

3. Positive Indicators:

• Timely Compliance: Accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance in reporting.
• Clear Ownership and Control: Ownership and voting rights are concentrated with a single PSC (50-75%), facilitating decision-making and control.
• Investment in Subsidiary: The holding company has substantial investment in its subsidiary (£402,000), which may represent underlying value not reflected in current liquidity metrics.

4. Due Diligence Notes:

• Investigate the financial health and cash flow position of the subsidiary company, as the holding company depends entirely on it for income.
• Review the terms and covenant requirements of the MBO loan and debenture to assess risk of accelerated repayment or enforcement actions.
• Confirm the nature of current liabilities (£338,738), particularly whether they include any overdue or contingent liabilities that could exacerbate solvency risk.
• Assess whether there are intercompany balances or related party transactions that impact the holding company’s financial stability.
• Obtain more detailed management accounts and cash flow forecasts to evaluate short-term liquidity prospects and operational plans.