BOA RESIDENTIAL LIMITED

Executive Summary

BOA Residential Limited shows improving financial position with positive net assets and growing cash balances, supported by a tangible investment property asset. Despite significant related party loans, the company appears solvent with controlled liabilities and manageable working capital. Credit approval is recommended subject to conditions on maintaining liquidity and monitoring related party exposures to mitigate concentrated funding risk.

BOA RESIDENTIAL LIMITED - Analysis Report

Company Number: 13272329

Analysis Date: 2025-07-29 15:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BOA Residential Limited is a small, privately held property investment company engaged in letting and operating its own real estate. It has shown modest balance sheet improvement over the past three years with net assets turning positive in 2024 and increasing by 2025. However, the company carries significant long-term liabilities (£123k owed to a related party), which represents its main debt exposure. Cash balances are low but have improved slightly to £14.4k by March 2025. The director appears to maintain control and oversight with an active management presence. While the company is currently solvent and demonstrates a going concern basis, its financial profile suggests limited liquidity buffer and dependency on related-party financing. Credit facilities could be considered but should be conditional on maintaining or improving liquidity and monitoring related party exposure.

2. Financial Strength:

• Net assets improved from negative £3,254 in 2022 to positive £8,079 in 2025, reflecting retained earnings and modest profitability.
• Fixed assets (investment property) remain stable at £118,891, indicating asset backing.
• The company has low share capital (£1) and depends heavily on funds owed to a related party (£123k).
• Current liabilities are relatively low (~£2k), producing positive net current assets of £12k, which is a good short-term liquidity sign.
• Overall balance sheet strength is moderate with a low equity base but positive net assets and asset coverage.

3. Cash Flow Assessment:

• Cash at bank increased from £1,506 in 2022 to £14,412 in 2025, showing improving liquidity.
• Net current assets improved from £718 to £12,313, indicating better working capital management.
• The company operates with minimal employees (1), suggesting controlled overheads.
• Reliance on related party loans for long-term funding is high; no external bank borrowings noted, reducing external debt risk but also limiting financing diversity.
• Cash flow appears stable but limited in scale; careful monitoring of cash inflows and outflows is recommended.

4. Monitoring Points:

• Closely track liquidity metrics, especially cash and net current assets, to ensure continued ability to meet short-term obligations.
• Monitor related party loans and any changes in terms or amounts, as this is the primary source of long-term funding and potential risk.
• Watch for any changes in investment property valuations or occupancy/rental income that could impact asset values and income streams.
• Review management actions regarding profitability and any plans to increase capital or diversify funding sources.
• Ensure timely filing of accounts and confirmation statements continue to maintain compliance and transparency.