Company Number: 13838192

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: LOW
   Bowden Bradley Ltd demonstrates solid financial health for a company incorporated in 2022. The firm reports positive net assets and strong liquidity with cash reserves significantly exceeding current liabilities. No overdue filings or compliance issues are noted, supporting a low-risk assessment.

2. Key Concerns:

• Reliance on directors’ loans: Related party creditors include substantial director current account balances (£65,975), which may indicate reliance on director funding rather than external finance.
• Limited operational history: Incorporated in 2022, the company has a short track record which limits assessment of long-term operational stability.
• Concentration risk: The three directors each hold 25-50% ownership and voting rights, indicating concentrated control which could pose governance risks if conflicts arise.

3. Positive Indicators:

• Strong liquidity position: Cash of £230k comfortably covers current liabilities of £168k, providing a healthy working capital buffer.
• Growing financial position: Net assets increased from £43.7k in 2023 to £142.8k in 2024, reflecting positive retained earnings growth.
• Compliance and governance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings or penalties.
• Industry focus: Operating in real estate agencies (SIC 68310), a sector with steady demand, supported by an active website presence for marketing.

4. Due Diligence Notes:

• Review director loan terms and repayment plans to understand financial risk and sustainability of reliance on related party funding.
• Obtain and analyze profit and loss data to assess profitability trends and operational cash flow quality, as this was not filed publicly.
• Investigate client base and contract diversification to evaluate revenue stability given the company’s early stage.
• Confirm adequacy of internal controls and governance given the concentrated ownership and director involvement.
• Assess contingent liabilities or off-balance sheet commitments not apparent in the filed accounts.