Company Number: 12509075

Analysis Date: 2025-07-19 12:33 UTC

1. Credit Opinion: DECLINE
   BPS Care Limited currently displays weak financial health with negative net current assets and shareholders' funds as of the latest financial year ending March 2024. The company’s current liabilities significantly exceed its current assets, resulting in a working capital deficit of £600. The negative net asset position (-£500) indicates that liabilities exceed assets, raising concerns about the company’s ability to meet short-term and long-term obligations. No profit and loss data is disclosed, but the balance sheet trends clearly point to financial deterioration over the past year. Without evidence of improving cash flow or capital injections, the company’s capacity to service new credit facilities is questionable.

2. Financial Strength:
   The balance sheet shows total fixed assets (investments) of £100 but current liabilities of £700, leading to net current liabilities of £600. Shareholders' funds have moved from a positive £100 in 2023 to a negative £600 in 2024, reflecting accumulated losses or write-downs not explicitly detailed. The company is classified as a small private limited company and has no auditing requirement, but the unaudited abridged accounts limit transparency. The negative equity position undermines capital adequacy and suggests financial distress.

3. Cash Flow Assessment:
   Cash balances remain minimal at £100, unchanged over the last two years, indicating no significant improvement in liquidity. The working capital deficit of £600 implies that the company does not have sufficient liquid assets to cover its short-term liabilities. No employee costs or operational expenses are detailed, but the absence of employees and minimal cash reserves point to limited operational activity or constrained cash flow generation. This liquidity position raises significant risk for new credit exposure.

4. Monitoring Points:

• Monitor quarterly updates or interim financials for signs of improved cash flow and reduction in current liabilities.
• Watch for any capital injections or equity restructuring that could restore positive net assets and working capital.
• Track director changes and any related party transactions, given the concentration of control among a few individuals and an associated company (Ultimate Care Limited) holding majority shares.
• Assess any upcoming filings for profit and loss statements or management commentary on turnaround strategies.