BIDURK LTD

Executive Summary

Bidurk Ltd exhibits steady growth in net assets and liquidity with positive working capital supported by director loans and related party credit. While the company appears financially stable for its size and sector, reliance on these internal funds introduces some risk. Credit approval is recommended on condition of ongoing review of cash flow, debtor management, and funding sustainability.

BIDURK LTD - Analysis Report

Company Number: 12569824

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Bidurk Ltd demonstrates a positive net asset position and growing working capital, indicating capacity to meet short-term obligations. However, the company relies on director loans and related-party transactions, which may pose some risk if these funds are withdrawn or not sustained. The absence of an audit and limited disclosure on profitability require cautious monitoring. Approval is recommended with conditions including ongoing review of cash flows and director funding commitments.

2. Financial Strength: The balance sheet shows net assets of £82,549 as at 31 March 2024, up from £62,664 the prior year, reflecting growth and retention of earnings. Fixed assets are minimal (£873), consistent with an advertising agency profile. Current assets (£372,580) significantly exceed current liabilities (£290,686), yielding positive net current assets of £81,894. Share capital is nominal (£100), with the bulk of equity represented by retained profits (£82,449). Deferred tax liability is minor (£218). Overall, the company’s financial position is sound for its size and sector but leans on director loans (£121,352) and related party credit (£79,913).

3. Cash Flow Assessment: Cash balances increased to £167,417 from £86,409, indicating enhanced liquidity. Trade debtors have risen substantially, which could impact cash flow depending on collection efficiency. Current liabilities have risen notably, including trade creditors £57,000, tax, VAT, and accruals, which require careful management to avoid liquidity strain. The director loan is unsecured and repayable on demand, which provides flexibility but also uncertainty. The related party debt is interest-free and repayable on demand, which is a credit risk consideration. Working capital is positive but should be monitored closely.

4. Monitoring Points:

• Track debtor ageing and collection to ensure receivables turn into cash timely.
• Monitor reliance on director loans and related party credit; assess sustainability and risk of withdrawal.
• Review profitability and cash generation in future accounts since profit and loss details are not disclosed.
• Watch for any changes in liabilities, especially tax and accruals, that could pressure liquidity.
• Ensure timely filing of accounts and confirmation statements continues to avoid compliance risks.