Company Number: 12430523

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: DECLINE
   Bevtech - Trading Ltd is currently operating with a net liability balance sheet position (£-34,102 as at 29 Feb 2024) and negative net current assets (£-34,921). This indicates that current liabilities exceed current assets, raising concerns about short-term liquidity and the company's ability to meet its obligations as they fall due. Although the director has confirmed continued support, reliance on such support is not a sustainable credit risk mitigant. The company’s trade debtors and other receivables have significantly decreased from the prior year, and current liabilities have also reduced but remain substantial. The company’s financial position has not improved materially over recent years, signaling ongoing difficulties. Given these factors, the company presents a high credit risk for lending without significant collateral or guarantees.

2. Financial Strength:
   The company has minimal fixed assets (£819 net book value) and a very low share capital (£1). Shareholders’ funds are negative and have deteriorated slightly from the previous year (£-34,103 vs. £-36,951), reflecting accumulated losses. The balance sheet shows a reliance on director support and potentially credit from suppliers or other creditors. The company’s net current liabilities and negative equity position indicate weak financial strength and insufficient capital to absorb losses or fund growth internally. The absence of long-term assets or reserves limits financial flexibility.

3. Cash Flow Assessment:
   Cash at bank is low at £5,892, insufficient to cover current liabilities of £138,194, highlighting potential liquidity constraints. Debtors reduced significantly from £280,312 to £84,581, which may reflect lower sales or improved collections, but also impacts working capital availability. The company has a working capital deficit of nearly £35k, implying ongoing cash flow challenges. Without detailed income statement and cash flow statements, it is difficult to assess operational cash generation, but the reported figures suggest the company is dependent on external financing or director funding to manage cash flow shortfalls.

4. Monitoring Points:

• Track changes in net current assets and overall liquidity position quarterly.
• Monitor debtor ageing and collections efficiency to prevent cash flow deterioration.
• Review director support arrangements and any related party transactions for sustainability.
• Watch for any significant changes in liabilities, especially short-term creditors and tax liabilities.
• Observe any upcoming financial filings or changes in business performance indicators to reassess credit risk.