BLEM GROUP LIMITED

Executive Summary

BLEM Group Limited, incorporated in 2023, presents significant liquidity and solvency concerns due to net current liabilities of £153,541 and overall net liabilities of £6,779, despite holding investment property valued at £392,092. The company relies heavily on secured bank loans totaling approximately £248,000, which may constrain financial flexibility. While regulatory filings are current and directors assert going concern, the financial position warrants careful scrutiny of loan terms, cash flow viability, and asset recoverability before investment consideration.

BLEM GROUP LIMITED - Analysis Report

Company Number: 15022033

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: HIGH
   The company shows a net liability position and significant net current liabilities, indicating potential solvency and liquidity risks. The large secured loans exceed total assets, which raises concerns about financial stability.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities are £6,779, indicating that total liabilities exceed total assets. This is a key solvency red flag.
• Substantial Net Current Liabilities: Current liabilities of £161,989 versus current assets of only £8,448 result in a net working capital deficit of £153,541, suggesting liquidity stress and potential difficulty meeting short-term obligations.
• High Secured Debt: Bank loans totaling £248,176 are secured against the investment property valued at £392,092. Heavy reliance on secured debt limits financial flexibility and increases refinancing risk.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £392,092, which represents a tangible asset base.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating regulatory compliance.
• Directors’ Confidence in Going Concern: Directors have stated their belief in creditor support and going concern status, reflecting some operational optimism.

4. Due Diligence Notes:

• Investigate the terms and covenants of secured loans, including repayment schedules and potential refinancing risks.
• Review cash flow forecasts and creditor arrangements to assess the feasibility of meeting short-term liabilities given the large net current liability position.
• Confirm valuation methodology and marketability of the investment property to determine asset liquidity and potential recoverable value.
• Assess the underlying business model and revenue streams, as no revenue or profit data is provided.
• Verify the identity and financial standing of the primary shareholders and directors who hold significant control.