Company Number: 12570144

Analysis Date: 2025-07-20 13:02 UTC

1. Credit Opinion: DECLINE
   Beverley Timber Buildings Ltd exhibits significant financial distress, with persistent and growing net current liabilities and negative shareholders' funds over the last several years. The company’s inability to generate positive working capital, coupled with low cash reserves and recurring creditor balances exceeding current assets, indicates a weak capacity to meet short-term obligations. The lack of profitability data notwithstanding, the balance sheet signals ongoing losses and financial strain, raising concerns over the firm's ability to service new or existing credit facilities reliably.

2. Financial Strength:
   The balance sheet reveals chronic undercapitalization, with shareholders’ funds deteriorating from a modest positive £22 in 2020 to a negative £7,113 in 2024. Fixed assets are minimal (£78), representing no significant collateral. Current liabilities (£8,300 in 2024) substantially exceed current assets (£1,111), resulting in a net current liability position of £7,189. The company’s reliance on directors' advances (£859 at year-end) suggests funding challenges. No bank loans are reported, indicating limited external borrowing, but the high trade creditors and tax liabilities imply operational cash flow constraints.

3. Cash Flow Assessment:
   Cash on hand is very low (£159), insufficient to cover immediate liabilities. Debtors have sharply declined from £6,040 in prior years to £952, which may indicate reduced sales or collection issues. The company’s working capital deficit signals liquidity risk and potential difficulties in meeting short-term creditors. The presence of accrued tax liabilities (corporation tax £1,597; VAT £2,427) and other accrued expenses further stresses liquidity. Absence of positive cash flow from operations or evidence of debt restructuring limits confidence in the company’s short-term solvency.

4. Monitoring Points:

• Monitor changes in net current assets and liquidity ratios to detect any improvement or further deterioration.
• Track debtor collections and turnover trends to assess operational performance and cash generation.
• Review directors’ advances and any external financing arrangements for indications of financial support or distress.
• Watch for timely filing of accounts and confirmation statements as compliance is a proxy for management control.
• Observe any material changes in creditor balances, especially tax and trade creditors, which could prompt enforcement action.