BOSS HOLDINGS (LEICESTER) LIMITED

Executive Summary

Boss Holdings (Leicester) Limited shows improving financial strength driven by property revaluation and increased net assets, supported by substantial fixed assets. However, the company has a negative working capital position and significant secured bank debt, indicating potential short-term liquidity risk. Credit approval is recommended with ongoing monitoring of liquidity and debt servicing metrics.

BOSS HOLDINGS (LEICESTER) LIMITED - Analysis Report

Company Number: 13547376

Analysis Date: 2025-07-29 18:59 UTC

1. Credit Opinion: APPROVE with conditions. Boss Holdings (Leicester) Limited is an active private limited company primarily operating as a holding company. The company has demonstrated positive net asset growth from £34,734 in 2021 to £454,793 in 2022, largely driven by a revaluation of its freehold property. However, the company has persistent negative net working capital (net current assets were -£285,622 in 2022) due to current liabilities exceeding current assets, which could pressure short-term liquidity. The bank loans are significant and secured against assets, but the company’s equity base and fixed asset backing provide comfort for long-term obligations. Management appears stable with no adverse director conduct. Approval is recommended with monitoring of liquidity and debt servicing capability.

2. Financial Strength: The company’s financial position has strengthened notably in 2022, with net assets increasing more than tenfold to £454,793 from £34,734 in 2021, mainly due to a £244k revaluation uplift in freehold property. Fixed assets increased to £1.5M, reflecting the revaluation, while shareholders’ funds increased accordingly. The company’s debt remains substantial with long-term bank loans of approximately £699k secured by the property. The capital structure is equity-light relative to debt but supported by tangible asset backing. There are deferred tax provisions related to the revaluation reserve. Overall, the balance sheet shows improvement but retains a leveraged position.

3. Cash Flow Assessment: The company’s current assets are limited (£45,851) with cash holdings at £45,667, while current liabilities stand at £331,473, producing a negative working capital position (-£285,622). This indicates potential short-term liquidity challenges. However, the company is a holding entity, likely generating income primarily through property rental, which may provide a steady cash inflow not fully detailed here. The reduction in current liabilities from previous year and improved cash balance is positive. Directors are owed significant amounts (£289,747), suggesting some internal financing. Continued focus on cash flow management and timely servicing of bank loans and creditors is essential.

4. Monitoring Points:

• Monitor liquidity ratios and cash flow from operations to ensure current liabilities are met without undue strain.
• Track any changes in property valuations as this is a key asset backing loans.
• Watch for any increase in debt levels or delayed payments to creditors.
• Review related party balances (director loans) for repayment or conversion to equity.
• Ensure timely filing of accounts and confirmation statements to maintain compliance.
• Observe any changes in shareholder or director control that could impact governance or financial strategy.