Company Number: 12562901

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: LOW
   Bionic Bull Limited shows solid financial health with positive net assets, strong net current assets, and no overdue filings. The company has grown its equity from a negative position in 2020 to a positive £65,076 in 2024, demonstrating operational recovery and capital strengthening. The absence of audit exemption issues and timely filings further support low risk.

2. Key Concerns:

• Dependency on Related Party Loan: A significant portion (£58,617) of current assets are loans to a related party, unsecured and repayable on demand, which may pose liquidity risk if repayment is delayed.
• Modest Cash Reserves: Cash at bank decreased from £10,710 in 2023 to £4,508 in 2024, which could constrain immediate liquidity despite positive working capital.
• Small Employee Base: With only 2 employees on average, operational continuity might be vulnerable to personnel changes or capacity constraints.

3. Positive Indicators:

• Strong Working Capital Position: Net current assets increased to £56,422 in 2024 from £41,444 in 2023, indicating good short-term financial stability.
• Consistent Profit Retention: Profit and loss reserves have grown steadily, reflecting sustained profitability or capital injections.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statement are filed on time, indicating good governance and regulatory compliance.
• Ownership and Control Stability: The ultimate parent company holds 75-100% control, which may provide strategic support and stability.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the large intercompany loan to Bionic Bull Holdings Limited, including any formal agreements and repayment history.
• Review cash flow statements (not provided) to assess actual liquidity dynamics and the impact of cash balances on operations.
• Assess operational risks related to the small workforce and any succession plans for key personnel, particularly the sole director.
• Confirm there are no contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Verify any related-party transactions beyond the disclosed loan to ensure arm’s length terms.