Company Number: 14838318

Analysis Date: 2025-07-29 16:04 UTC

1. Credit Opinion: DECLINE
   BPGM LIMITED is a newly incorporated private limited company (since May 2023) with only one set of filed accounts to May 2024. The financials show net current liabilities of £15,174 and net negative shareholders’ funds of the same amount, indicating the company is currently insolvent on a balance sheet basis. The company has no employees and minimal cash (£2), with most current assets tied up in debtors (£234,743), which raises concerns about the collectability and liquidity of these receivables. Creditors slightly exceed current assets, showing a working capital deficit. Without a track record of profitability or positive net assets, and given the absence of cash reserves, the company’s ability to service debt or meet credit obligations is highly uncertain. No audit or detailed profit and loss information is available, further limiting insight into operational performance or cash generation. Therefore, approval for credit facilities is not recommended at this stage.

2. Financial Strength:
   The balance sheet indicates weak financial strength. Negative net assets (£-15,174) and net current liabilities reflect undercapitalization and possible reliance on short-term funding or shareholder loans. The company’s total exemption full accounts show no tangible fixed assets or retained earnings. Its capital structure is fragile, and it lacks financial buffers to absorb operating shocks. The reliance on a single director and shareholder controlling 75–100% of voting rights suggests concentrated ownership but does not mitigate the current financial weakness.

3. Cash Flow Assessment:
   The liquidity position is precarious with only £2 in cash and a working capital deficit. The large debtor balance relative to cash raises concerns about cash conversion cycles and the timing of cash inflows. If these receivables are not readily collectible, the company may face immediate cash flow shortages. The absence of employees and minimal operating activity may reduce cash burn, but the current liabilities exceeding current assets indicate potential short-term liquidity pressure.

4. Monitoring Points:

• Collectability of debtors and conversion to cash
• Changes in working capital and cash balances in future filings
• Any capital injections or shareholder loans to improve liquidity
• Filing of subsequent accounts and confirmation statements on time
• Operational performance and profit generation once trading activity stabilizes
• Director actions regarding financial restructuring or additional funding