BLACKBURN RHYS-JONES DEVELOPMENTS LTD

Executive Summary

Blackburn Rhys-Jones Developments Ltd shows substantial investment property assets but currently operates with negative net assets and significant working capital deficits. While the company complies with reporting obligations and holds adequate long-term financing, short-term liquidity pressures and negative equity pose credit risks. Conditional approval is advised, contingent on close monitoring of cash flow and debt servicing capacity.

BLACKBURN RHYS-JONES DEVELOPMENTS LTD - Analysis Report

Company Number: 13033412

Analysis Date: 2025-07-20 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Blackburn Rhys-Jones Developments Ltd is an active private limited company primarily engaged in real estate management and sales. The company has sizeable fixed assets largely in investment property (£613k), but its balance sheet shows negative net assets (£-77k) and significant net current liabilities (£-162k). The company carries substantial long-term debt (£451k bank loans), which is manageable if cash flow supports repayments. The directors have maintained timely filings with no overdue accounts or returns, indicating compliance and governance discipline. However, the negative equity and working capital deficit present a credit risk that requires monitoring. Approval is recommended with conditions on maintaining liquidity and servicing debt obligations.

2. Financial Strength
   The balance sheet reveals a heavy reliance on debt financing: total liabilities exceed total assets, resulting in negative shareholders’ funds of £93.6k. Fixed assets, mainly investment properties valued at market, provide some security for loans. However, the company’s net current liabilities of £161.8k signify tight short-term liquidity. The company’s share capital is nominal (£3), indicating limited equity buffer. There is a slight deterioration in net assets from the prior year, reflecting ongoing losses or revaluation impacts. Overall, financial strength is weak due to negative equity and working capital deficits, but the asset base in real estate offers collateral value.

3. Cash Flow Assessment
   The company holds cash of £49k, which is an improvement from £18.8k the previous year, suggesting some enhancement in liquidity. However, current liabilities (£213k) far exceed current assets (£51.7k), indicating potential short-term cash flow pressure. The sizeable amount owed to group undertakings (£170.6k current) may provide some internal funding flexibility but also represents a liability. The company must demonstrate consistent operating cash inflows and prudent working capital management to meet debt service requirements. Given the long-term bank loans repayable over more than five years, short-term liquidity management is critical.

4. Monitoring Points

• Liquidity ratios and cash flow trends to ensure current liabilities can be met as due
• Debt service coverage to confirm ability to meet interest and principal payments on bank loans
• Asset valuations for investment properties to verify collateral value remains stable
• Profitability and retained earnings trajectory to monitor improvements in equity position
• Related party transactions and intercompany balances to assess any dependency risks
• Timely filing of accounts and confirmation statements to maintain compliance and transparency