BONSANARE LTD

Executive Summary

Bonsanare Ltd shows a concerning liquidity position with current liabilities vastly exceeding current assets, posing a high risk to solvency and operational sustainability. The company holds investment property assets but lacks sufficient working capital and revenue information to mitigate short-term financial pressures. While compliance filings are up to date and governance appears stable, further detailed investigation into liabilities and revenue generation is essential.

BONSANARE LTD - Analysis Report

Company Number: 13273077

Analysis Date: 2025-07-29 15:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk as current liabilities drastically exceed current assets, resulting in a large negative net working capital position. Despite holding fixed assets in investment property, the company's ability to meet short-term obligations is severely constrained.

2. Key Concerns:

• Liquidity Deficiency: Current liabilities of approximately £324k far exceed current assets of £48k, creating a net current liability of around £276k, indicating potential cash flow stress.
• Minimal Equity Cushion: Shareholders’ funds are very low at £11.4k, providing little buffer against operational or market shocks.
• No Operating Activity or Revenue Data: The absence of turnover or profit information and no employees raises questions about operational sustainability and revenue generation capability.

3. Positive Indicators:

• Stable Asset Base: Fixed assets consist entirely of investment property valued consistently at £287k, which could potentially be monetized or leveraged.
• On-Time Filing Compliance: The company has filed accounts and confirmation statements on time, indicating regulatory compliance.
• Experienced Directors: Both directors have been in place since incorporation and hold significant ownership, suggesting stable governance at management level.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, particularly the significant creditor balance (~£320k), to understand payment obligations and any potential disputes.
• Assess the income generation from investment properties or other revenue streams, including rental contracts and occupancy rates.
• Review cash flow projections and any plans to improve liquidity or restructure liabilities.
• Confirm whether there are any contingent liabilities or off-balance sheet risks related to the investment properties.
• Evaluate the directors’ strategy for addressing the negative working capital position and the company’s operational plans going forward.