BION AUTO LTD

Executive Summary

BION AUTO LTD, a recently incorporated micro private limited company, currently exhibits negative net assets and working capital deficits, posing significant solvency and liquidity risks. While the company maintains regulatory compliance, its financial position and single-person control highlight operational vulnerabilities. Further due diligence on business viability and management capability is advised before investment.

BION AUTO LTD - Analysis Report

Company Number: 14480418

Analysis Date: 2025-07-29 17:28 UTC

1. Risk Rating: HIGH
   The company’s latest financials show net current liabilities and negative net assets, indicating insolvency risk. Its micro-entity status with minimal current assets relative to liabilities raises concerns about its ability to meet obligations.

2. Key Concerns:

• Negative net current assets of £-1,149 and negative net assets/shareholders’ funds reflecting potential insolvency.
• Very limited current assets (£654) against short-term liabilities (£1,803), suggesting liquidity stress.
• Single director/shareholder with no diversification of control or management, which may impact operational resilience and governance.

3. Positive Indicators:

• Company is active and compliant with filing deadlines, indicating regulatory adherence.
• Recent incorporation (Nov 2022) with no overdue accounts or confirmation statements, showing initial organizational discipline.
• Micro-entity status suggests a small scale, potentially limiting exposure to large liabilities.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue generation plans given the negative working capital.
• Assess the director’s experience and capacity to manage financial and operational risks.
• Review any off-balance sheet liabilities or contingent risks not disclosed in the accounts.
• Confirm whether there are any external financing arrangements or shareholder support to cover shortfalls.