Company Number: 12839711

Analysis Date: 2025-07-20 11:56 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity issues with net current liabilities increasing sharply to £103,309 as of March 2024 from a minor deficit the prior year. Net assets have deteriorated substantially from £15,451 in 2023 to just £2,545 in 2024. Additionally, provisions for liabilities have risen markedly, indicating potential contingent or actual obligations impacting solvency.

2. Key Concerns:

• Liquidity Deficit: The large net current liabilities position (£103k negative working capital) suggests the company may struggle to meet short-term obligations on time.
• Eroded Equity Base: The drastic drop in shareholders’ funds from £15,451 to £2,545 within one year is a red flag for financial stability and solvency risk.
• Rising Provisions for Liabilities: Provisions increased from £4,200 to £16,095, indicating potential future outflows or unresolved liabilities that may impair financial health further.

3. Positive Indicators:

• Active Status and On-Time Filings: The company is active, with no overdue accounts or confirmation statements, indicating compliance with regulatory filing requirements.
• Tangible Fixed Assets Investment: Significant investment in tangible fixed assets (£121,949 net book value) in 2024, up from £22,241 in 2023, may indicate capital expenditure aimed at operational capacity or growth.
• Single Controlling Shareholder: Ownership concentration (75-100% held by Mr. Justin Conrad Snell) can facilitate decisive governance and potentially ease capital support if required.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant increase in current liabilities and provisions for liabilities to understand if these are one-off, cyclical, or structural problems.
• Assess cash flow statements (not provided) to confirm liquidity trends and timing of cash inflows and outflows.
• Review turnover and profitability trends (not disclosed) to evaluate operational sustainability and the ability to restore equity and working capital.
• Clarify the composition of "other creditors" which dominate current liabilities (£247,767 of £257,090 total) to determine if these represent deferred payments, loans, or trade payables.
• Confirm whether the large fixed asset additions are financed by debt or equity and their expected impact on future revenue.

Executive Summary:
B.S. Life Ltd is currently facing high financial risk primarily driven by deteriorating liquidity and a significant reduction in net assets within the latest financial year. While regulatory compliance and asset investment are positive, the sharp increase in current liabilities and provisions for liabilities raise concerns about the company’s ability to meet short-term obligations and maintain solvency without additional capital or operational improvements. Further examination of cash flows, debt structure, and profitability is advised to fully assess financial sustainability.