BRISTOL INVESTMENTS LTD
Executive Summary
Bristol Investments Ltd displays high financial risk characterized by significant negative net current assets and shareholders’ funds, indicating solvency and liquidity challenges. Despite substantial fixed assets and compliance with filing obligations, the company’s operational and financial sustainability is uncertain. Further due diligence on asset liquidity, debt structure, and cash flows is essential before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
BRISTOL INVESTMENTS LTD - Analysis Report
Risk Rating: HIGH
The company exhibits a persistently negative net asset position and severely negative net current assets, indicating significant solvency and liquidity risk. The scale of current liabilities far exceeds current assets, and net liabilities have worsened over recent years.Key Concerns:
- Severe Negative Net Current Assets: Current liabilities (£619,922) vastly exceed current assets (£120) as of the latest accounts, suggesting critical short-term liquidity issues.
- Persistently Negative Shareholders’ Funds: Shareholders’ funds have deteriorated from -£3,231 in 2023 to -£18,810 in 2024, highlighting ongoing losses and erosion of capital.
- No Employees and Minimal Operating Activity: The company reports zero employees and minimal current assets, which may indicate limited operational activity and potential sustainability concerns.
- Positive Indicators:
- Substantial Fixed Assets: The company holds significant fixed assets (£602,432), which could be leveraged or sold to improve liquidity or meet creditor demands.
- No Overdue Filings: The company’s accounts and confirmation statements are filed on time, demonstrating regulatory compliance and governance diligence.
- Single Controlling Shareholder: With 75-100% ownership and director control concentrated in Mr. Khaliq Mohammed Sharif, decision-making may be streamlined.
- Due Diligence Notes:
- Assess Nature and Marketability of Fixed Assets: Investigate the type, condition, and liquidity of fixed assets to determine if they can realistically support debt repayment or refinancing.
- Review Debt Terms and Creditor Arrangements: Understand the composition, maturity, and covenants associated with the large current liabilities to evaluate immediate solvency threats.
- Examine Cash Flow History and Forecasts: Given the negative working capital, cash flow statements and projections are critical to assess ongoing operational viability.
- Confirm Director and Related Party Transactions: Verify if any related party loans or transactions exist given the director’s sole control and the company’s financial position.
- Understand Business Model and Revenue Streams: Clarify how the company generates income, given zero employees and minimal current assets, to evaluate operational sustainability.
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