BLEBO AND MCGOVERN JV LTD

Executive Summary

BLEBO AND MCGOVERN JV LTD exhibits moderate financial risk tied to liquidity constraints and high leverage relative to equity, typical for a young micro-entity in real estate. The company maintains regulatory compliance with timely filings, but limited financial transparency and working capital deficits warrant close monitoring. Further due diligence on creditor terms, cash flows, and operational performance is recommended before investment.

BLEBO AND MCGOVERN JV LTD - Analysis Report

Company Number: SC725014

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: MEDIUM

Justification: BLEBO AND MCGOVERN JV LTD is a recently incorporated micro-entity operating in real estate letting, with modest assets but limited working capital and equity. The presence of significant long-term liabilities relative to equity and current assets presents a moderate solvency and liquidity risk. However, compliance with filing deadlines and absence of adverse director records mitigate governance concerns.

2. Key Concerns:

• Liquidity and Working Capital Deficit: As of 31 March 2024, the company reports current liabilities (£215,538) exceeding current assets (£193,389), resulting in negative net current assets (-£22,149), which may indicate short-term cash flow pressure.
• High Long-Term Creditors Relative to Equity: Creditors due after more than one year stand at £191,250 against shareholders’ funds of only £7,609, suggesting high gearing and potential solvency risk if asset values or income streams deteriorate.
• Limited Financial History and Absence of Profit and Loss Disclosure: The company has only two years of financial data, and the directors have elected not to include the profit and loss account, reducing transparency into operational performance and sustainability.

3. Positive Indicators:

• Timely and Compliant Filings: Accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance.
• Asset Base Established: Fixed assets of £221,008 suggest the company has invested in tangible property, supporting its business model in real estate letting.
• Clear Ownership Structure: Two named corporate persons with significant control owning 25-50% each provide visible governance and accountability.

4. Due Diligence Notes:

• Review underlying nature and terms of long-term creditors to assess repayment schedules, covenants, and security arrangements.
• Obtain or request management accounts or cash flow forecasts to evaluate liquidity management and operational cash generation.
• Investigate reasons for omission of profit and loss account and seek additional disclosures on revenues, expenses, and profitability.
• Confirm no director disqualifications or adverse regulatory actions beyond Companies House filings.
• Assess market conditions and tenant stability affecting the real estate portfolio to understand operational risks.