BMC PROPERTY MANAGEMENT LTD

Executive Summary

BMC Property Management Ltd shows a concerning liquidity position with net current liabilities sharply worsening in the latest year, posing a high solvency risk. While the company maintains positive net assets and complies with filing requirements, the lack of employees and significant creditor increases raise questions about operational sustainability and cash flow stability. Further investigation into creditor structure and business activity is strongly recommended before investment consideration.

BMC PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13575839

Analysis Date: 2025-07-20 15:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk as evidenced by a substantial net current liabilities position (£-307,991) in the latest financial year (2024). This implies an inability to meet short-term obligations from current assets, which is a critical solvency concern. Additionally, the sharp deterioration compared to prior years' positive net current assets signals worsening financial health.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities due within one year have ballooned to £407,281 against current assets of only £99,290, pushing net current liabilities into a large negative figure.
• Unusual Changes in Creditors: Creditors falling due within one year increased dramatically from £8,924 in 2023 to £407,281 in 2024, while long-term creditors decreased significantly, indicating potential reclassification or repayment issues.
• No Employees and Limited Operational Activity: The company reports zero employees including directors, suggesting minimal or no ongoing operational activity, which raises questions about sustainability and revenue generation.

3. Positive Indicators:

• Positive Net Assets: Despite liquidity issues, net assets are positive at £75,403, reflecting some retained value in fixed assets (£385,210).
• Up-to-Date Filings: Accounts and confirmation statements are filed on time with no overdue returns, indicating regulatory compliance and good governance on filing obligations.
• Micro Entity Status: The company benefits from simplified reporting requirements, which may reflect a low operational scale and controlled cost base.

4. Due Diligence Notes:

• Investigate the nature and cause of the large increase in short-term creditors and the sharp decline in long-term creditors between 2023 and 2024.
• Review cash flow statements (if available) or bank records to assess immediate solvency and ability to meet short-term liabilities.
• Clarify business operations and revenue generation given the absence of employees and apparent minimal activity.
• Confirm the status and valuation of fixed assets to ensure they can support the company's obligations or be liquidated if necessary.
• Assess any contingent liabilities, related party transactions, or off-balance sheet risks that may not be visible in micro-entity accounts.