Company Number: 12826739

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   Betaforce Limited shows significant solvency risk, primarily due to substantial current liabilities far exceeding current assets, resulting in a large negative working capital position. The company’s financial leverage is high, with long-term debt and provisions creating further pressure on net assets despite recent asset acquisitions.

2. Key Concerns:

• Liquidity Risk: Current liabilities of £521,836 vastly exceed current assets of £7,012 as of August 2024, indicating potential difficulty in meeting short-term obligations.
• High Financial Leverage: The company has long-term liabilities of £205,128 plus provisions of £51,875, increasing financial risk given relatively modest net assets of £11,111.
• Profitability and Cash Flow Uncertainty: No reported turnover or profits are visible from the accounts; average employees are nil, suggesting no operational income generation to support debt servicing or growth.

3. Positive Indicators:

• Substantial Investment Property Assets: Tangible assets and investment properties have been acquired and revalued to £782,938, providing a strong asset base that may support refinancing or sale if needed.
• No Overdue Filings: The company is compliant with statutory filing deadlines for both accounts and confirmation statements, reducing regulatory risk.
• Clear Ownership and Control Structure: PSCs and directors are identified with no adverse governance flags such as disqualifications.

4. Due Diligence Notes:

• Investigate the nature and terms of the £205k bank loans and £51k provisions to understand repayment schedules and any covenants or contingent liabilities.
• Review cash flow forecasts and the company’s business plan to assess how it intends to address its current negative working capital and debt obligations.
• Confirm the valuation methodology and marketability of the investment properties to evaluate the feasibility of asset-based financing or liquidation if necessary.
• Clarify the operational model and revenue streams, as the absence of employees and turnover raises questions about the company’s ongoing business activities and sustainability.
• Assess related-party transactions or guarantees given the involvement of controlling shareholders and directors at the same business address.