BEYOND META LTD

Executive Summary

Beyond Meta Ltd shows promising liquidity growth and business expansion but remains financially leveraged with negative equity and significant related party debt. Conditional credit approval is recommended with careful ongoing monitoring of cash flow, debtor collection, and creditor management to mitigate risk. The company’s young age and limited trading history warrant prudence in extending credit facilities.

BEYOND META LTD - Analysis Report

Company Number: 14016397

Analysis Date: 2025-07-20 18:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Beyond Meta Ltd is a very young company (incorporated 2022) operating in management consultancy. The company shows rapid growth in current assets and cash, but it is heavily leveraged with significant creditor balances falling due after one year (£518k), which has resulted in negative net assets (£10.9k). The company’s going concern statement is supported by the director’s forecasts, but reliance on related party and director loans indicates potential risk. Approval for credit facilities should be conditional on continued close monitoring of cash flow and creditor management, with possible personal guarantees or security due to the company's negative equity and limited trading history.

2. Financial Strength:

• Fixed assets are negligible (£218), reflecting a service-based business with low capital intensity.
• Current assets increased dramatically from £55k in 2023 to £512k in 2024, primarily cash (£257k) and debtors (£254k), indicating strong growth in business volume or advance payments.
• Current liabilities are minimal (£4k), but long-term creditors have increased sharply from £57k to £519k, likely representing loans from related parties or director financing.
• Negative shareholders' funds (£10.9k) reflect accumulated losses or loan financing exceeding equity, which weakens the balance sheet and increases financial risk.

3. Cash Flow Assessment:

• Cash position has improved substantially from £7k to £257k, suggesting recent inflows or capital injections.
• Debtors are high relative to turnover (not reported but implied by large debtor balances), which may impact liquidity if collections slow.
• Net current assets of £507k indicate a strong short-term liquidity position.
• Reliance on director’s loan account (£417k) and related party balances totaling over £296k suggest dependency on intra-group funding rather than operational cash generation.
• Working capital is currently positive, but monitoring debtor aging and creditor repayments is critical.

4. Monitoring Points:

• Track ongoing cash flow generation from operations versus reliance on related party and director loans.
• Monitor debtor collection periods to avoid liquidity squeezes.
• Watch creditor balances and repayment schedules, especially long-term debts that have increased significantly.
• Review updated forecasts and any further capital injections or loan restructuring.
• Assess any impact or liabilities arising from the acquisition of Evergreen Nutrition Ltd, which was debt-financed.
• Monitor any changes in directors or PSCs and their financial support commitment.