B.M.K CARS LTD

Executive Summary

B.M.K CARS LTD is a newly incorporated micro-entity with ongoing negative net assets and working capital deficits, indicating high solvency and liquidity risk. While regulatory compliance is maintained, the company’s financial position and lack of employees suggest operational challenges. Further investigation into cash flow and business plans is essential to assess future viability.

B.M.K CARS LTD - Analysis Report

Company Number: 14369975

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders' funds, indicating ongoing solvency challenges and an inability to meet current obligations from available assets.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by £4,178 as of the latest accounts, worsening from prior years. This signals liquidity stress and potential cash flow difficulties.
• Negative Shareholders’ Funds: The company’s net assets are negative (£4,178), reflecting accumulated losses or undercapitalization, raising concerns about financial stability.
• No Employees or Operational Scale: The company reports no employees and small scale (micro-entity), limiting operational capacity and resilience. The financial data suggests limited ongoing business activity or revenue generation.

3. Positive Indicators:

• Current and Up-to-Date Filings: Both the annual accounts and confirmation statements are filed on time, showing compliance with regulatory requirements.
• Single Controlling Director/PSC: Ownership and control are consolidated in one individual, which may facilitate swift decision-making and strategic control.
• Industry Focus: Engaged in maintenance, repair, and sale of used vehicles, sectors with consistent demand, potentially providing a business foundation if capitalized appropriately.

4. Due Diligence Notes:

• Review Cash Flow and Funding Sources: Clarify how the company is funding operations given negative working capital and shareholders’ funds, and whether there are external loans, director loans, or other financial support.
• Investigate Revenue Streams and Profitability: Obtain management accounts or detailed trading data to assess operational sustainability beyond the balance sheet figures.
• Assess Director’s Strategy and Plans: Understand the business plan from the director, including plans for capital injection, cost control, or growth initiatives to return the company to positive equity and liquidity.