BONWEN LIMITED

Executive Summary

Bonwen Limited presents a stable financial position with strong liquidity and positive net assets, supported by prudent working capital management and a debt-free balance sheet. Despite a contraction in asset size compared to the prior year, the company's ability to meet short-term obligations is solid, supporting credit approval with ongoing monitoring. The niche nature of the business and small scale warrant attention to revenue trends and sector risks.

BONWEN LIMITED - Analysis Report

Company Number: SC679847

Analysis Date: 2025-07-29 20:32 UTC

1. Credit Opinion: APPROVE with caution. Bonwen Limited demonstrates a positive net asset position and healthy working capital as of the latest financial year ending November 2023. However, the company operates in a niche retail sector (commercial art galleries) which can be sensitive to economic cycles and discretionary spending. The decline in current assets and net assets compared to 2022 suggests some financial contraction, warranting close ongoing monitoring. The absence of employees and relatively low share capital imply a lean operation, possibly owner-managed, which reduces fixed overhead risks but may limit scalability.

2. Financial Strength: The balance sheet shows net assets of £40,423 and net current assets of £40,423 at 30 November 2023, down from £53,423 in 2022. Current assets of £44,925 (mainly cash £39,146) comfortably exceed current liabilities of £4,502, indicating good short-term solvency. The decrease in debtors from £55,288 in 2022 to £5,779 in 2023 could reflect improved debtor collection or reduced sales on credit, both potentially positive. Shareholders’ funds equate to net assets, reflecting no external debt on the books, which is a strong indicator of financial stability. The company holds minimal fixed assets, consistent with its retail gallery nature.

3. Cash Flow Assessment: Cash on hand (£39,146) is robust relative to current liabilities (£4,502), signifying strong liquidity and ability to meet short-term obligations without stress. The substantial reduction in debtors suggests efficient working capital management or lower credit sales, improving cash flow reliability. No employees are recorded, implying low payroll commitments. Overall, the company appears to maintain sufficient liquid resources and working capital to support ongoing operations and credit obligations.

4. Monitoring Points:

• Track revenue and debtor trends to ensure the reduction in debtors is sustainable and not due to declining sales.
• Monitor net asset levels and liquidity given the decrease since last year.
• Watch sector conditions and discretionary consumer spending patterns affecting art retail.
• Verify timely filing of accounts and confirmation statements continues, indicating good governance.
• Assess any changes in director or ownership structure that could impact management stability or control.