BML PROPERTY GROUP 7 LTD

Executive Summary

BML Property Group 7 Ltd exhibits weak financial health, characterized by significant negative equity and poor liquidity with current liabilities far exceeding current assets. The company’s balance sheet is highly leveraged with creditor funding surpassing asset base, raising concerns about its ability to meet short-term obligations or service new debt. Given these financial vulnerabilities and lack of profitability disclosure, credit approval is not recommended without substantial mitigation.

BML PROPERTY GROUP 7 LTD - Analysis Report

Company Number: 14673645

Analysis Date: 2025-07-29 18:25 UTC

1. Credit Opinion: DECLINE. Despite the company being active and filing accounts on time, the financials reveal significant concerns. The firm shows persistent negative net assets and shareholders’ funds, deteriorating from -£5,649 in 2023 to -£85,447 in 2024. The large current liabilities (£697,401) vastly exceed current assets (£6,778), resulting in a substantial negative working capital position (-£98,421). This liquidity shortfall indicates a high risk of inability to meet short-term obligations. Moreover, the reliance on long-term creditors (£697,401) surpasses total assets less current liabilities, suggesting heavy gearing and financial strain. Given these factors, the company’s capacity to service debt or new credit facilities is questionable.

2. Financial Strength: The balance sheet shows fixed assets increasing from £307,898 to £711,203, which may reflect investment or acquisition of property assets in line with the company’s real estate activities. However, these assets appear heavily leveraged by creditor financing, as evidenced by creditors after one year rising from £225,226 to £697,401. The net asset deficit and negative equity reflect accumulated losses or undercapitalisation. The company’s micro-entity status and small workforce (2 employees) indicate limited operational scale. Overall, the balance sheet is weak, with solvency concerns arising from negative equity and high gearing.

3. Cash Flow Assessment: Current assets of £6,778 (likely cash and receivables) are minimal relative to current liabilities of £697,401, creating a negative net current asset position. This suggests severe working capital constraints. The company may face difficulty paying suppliers or short-term debts without additional funding or asset disposals. No profit and loss data was provided, but the negative equity trajectory implies operational losses or high financing costs. The absence of an audit or detailed P&L limits full cash flow visibility, but the balance sheet signals liquidity risk.

4. Monitoring Points:

• Track improvements in net current assets and working capital management.
• Monitor any changes in creditor structure and repayment schedules.
• Review future annual accounts for profitability trends and cash flow statements.
• Assess directors’ plans to recapitalise or restructure debt.
• Watch for any overdue filings or changes in company status indicating distress.
• Evaluate external market conditions impacting the real estate sector and asset valuations.