BROADVIEW FINANCIAL SERVICES LTD
Company number 06315455 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: Broadview Financial Services Ltd
1. Risk Rating: HIGH
The company exhibits significant solvency and liquidity vulnerabilities. Net current assets stand at merely £4 against current liabilities of £58,702, cash reserves have depleted to £846, and the balance sheet is overwhelmingly reliant on a single debtor balance of £57,860. These factors create material going concern uncertainty.
2. Key Concerns
Concern 1: Critical Liquidity Position
Cash at bank has deteriorated from £47,183 (2019) to £846 (2024)—a 98.2% decline over five years. With current liabilities of £58,702 due within one year and net current assets of only £4, the company has virtually no working capital buffer. The ability to meet obligations as they fall due is heavily dependent on debtors paying on time.
Concern 2: Debtor Concentration Risk
"Other debtors" of £57,860 represent 98.5% of total current assets. If this balance proves irrecoverable or delayed, the company would be immediately insolvent with net current liabilities of approximately £57,856. The nature and recoverability of this balance is the single most critical factor in assessing financial stability.
Concern 3: Significant Tax and Creditor Obligations
The corporation tax liability of £28,698 and other creditors of £19,995 (up from £6,872 in 2023—a 191% increase) represent substantial cash outflows required in the near term. Bank loans and overdrafts of £7,044 have appeared in 2024 where none existed in 2023, suggesting the company has already needed to draw on borrowing facilities.
3. Positive Indicators
- Filing Compliance: Accounts are filed on time with no overdue filings. The 2024 accounts were approved on 21 March 2025, within statutory deadlines.
- Profitability Indicated: A corporation tax liability of £28,698 suggests the company generated meaningful profits in the period, which is a fundamentally positive operational signal.
- Longevity: The company has been operational since 2007 (17+ years), demonstrating resilience through multiple economic cycles.
- Net Asset Improvement: Net assets increased from £2,411 (2023) to £3,488 (2024), suggesting retained profits are being accumulated, albeit modestly.
- Employee Retention: The business maintains 9 employees (down from 10), indicating ongoing operational activity.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Other Debtors (£57,860) | Determine composition—are these trade debtors, related party balances, or prepayments? Assess age, collectibility, and whether any provisions should be made. If related to T & P Financial Services Limited (the corporate PSC), this raises further concerns about intercompany dependency. |
| Corporation Tax Funding (£28,698) | Clarify payment dates and how this liability will be funded from current cash of £846. Consider whether time-to-pay arrangements with HMRC are in place or being sought. |
| Other Creditors Increase (£6,872 → £19,995) | Investigate the 191% increase. Determine whether these are trade creditors, director loans, or other obligations. Understand terms and any associated security. |
| New Bank Borrowing (£7,044) | The appearance of bank loans/overdrafts in 2024 where none existed in 2023 requires scrutiny—what are the terms, maturity, and security? Is this a sign of cash flow distress? |
| Provisions (£1,076) | The nature of provisions should be understood—whether these relate to warranties, litigation, or other obligations. |
| Registered Address Discrepancy | The company overview shows Prospect House, Pride Park, while the filed accounts reference St Peters House, St Marys Wharf. Confirm the current trading address and whether a recent relocation has occurred, which could incur additional costs. |
| Related Party Transactions | T & P Financial Services Limited holds 25-50% of shares. Investigate whether trading relationships exist between the entities and whether the debtor balance is related-party in nature. |
| Going Concern Assessment | The accounts contain no explicit going concern statement. Given the net current assets of £4, seek confirmation from directors that they have assessed going concern and can demonstrate viability for at least 12 months. |