BPM CONSTRUCTION LTD

Executive Summary

BPM CONSTRUCTION LTD demonstrates a weak financial position with sustained negative net assets and poor liquidity. The company’s inability to cover current liabilities with current assets raises serious credit risk concerns. Without evidence of capital support or operational turnaround, extending credit facilities is not advisable at this stage.

BPM CONSTRUCTION LTD - Analysis Report

Company Number: 13126158

Analysis Date: 2025-07-20 12:13 UTC

1. Credit Opinion: DECLINE
   BPM CONSTRUCTION LTD shows persistent negative net assets and shareholders’ funds over the last three reported years, indicating ongoing losses and erosion of capital. The company’s current liabilities exceed its current assets substantially, resulting in negative working capital and weak liquidity. No employees are reported, suggesting minimal operational scale or activity. The company’s ability to service new or existing debt obligations is highly questionable given the chronic deficit position and limited financial resource base. No evidence suggests a turnaround or injection of capital is imminent.

2. Financial Strength:
   The balance sheet is notably weak, with net liabilities increasing from £-237k in 2021 to £-783k in 2024. Current liabilities have grown from £237k to £596k while current assets remain negligible (£13 in 2024). The company’s net current liabilities of £-583k and negative total net assets indicate an insolvent position on a balance sheet basis. Share capital of £1.00 is nominal and does not support the deficit. The company’s classification as a micro entity with no employees also indicates limited operational scale and financial buffer.

3. Cash Flow Assessment:
   Reported cash balances have declined from £52 in 2023 to £13 in 2024 with no working capital to support ongoing operations. The absence of positive net current assets and ongoing accruals/deferred income of £200 suggest cash flow is extremely constrained. There is no indication of positive operating cash flow or external funding to support liquidity needs. This raises serious concerns about the company’s ability to meet short-term obligations or fund continued trading.

4. Monitoring Points:

• Monitor any additional capital injections or shareholder funding to improve net asset position.
• Track changes in current liabilities and accruals to assess liquidity risk.
• Watch for filing of profit and loss accounts or notes on operational performance to evaluate any improvement.
• Observe director appointments or changes that might indicate restructuring efforts.
• Review future accounts for signs of improved cash generation or reduction of liabilities.