BS PLACE LTD

Executive Summary

BS Place Ltd displays high financial risk characterized by significant negative net assets and worsening liquidity with no cash reserves. Despite compliant regulatory filings and active operations, the company's current financial position raises serious concerns regarding its ability to meet obligations and sustain operations without additional capital or restructuring. Further investigation into creditor terms and cash flow management is essential.

BS PLACE LTD - Analysis Report

Company Number: 13558552

Analysis Date: 2025-07-19 12:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, demonstrated by increasing net current liabilities and negative shareholders' funds. The sharp growth in current liabilities relative to current assets and the absence of cash on hand are critical concerns.

2. Key Concerns:

• Severe Negative Net Current Assets: As of 31 August 2024, BS Place Ltd shows net current liabilities of £273,470, worsening from £139,435 the prior year, indicating acute short-term liquidity issues.
• Negative Shareholders' Funds and Net Assets: The company’s net assets deteriorated to a negative £270,191, almost doubling the prior year’s deficit, signaling sustained losses and erosion of equity base.
• Cash Position: No cash reported as of August 2024, which raises immediate concerns about the company’s ability to meet current obligations and fund operations.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date on both accounts and confirmation statement filings, indicating good regulatory compliance and governance in this respect.
• Active Business Operations: Website presence and business description suggest ongoing commercial activity in coworking and creche services, which may provide future revenue streams.
• Single Controlling Shareholder and Director: Clear ownership structure with a single PSC controlling 75-100% shares and voting rights simplifies governance and decision-making.

4. Due Diligence Notes:

• Investigate nature and terms of the large current liabilities (£299,679), especially "other creditors" (£296,816) to understand payment obligations and potential restructuring.
• Assess debtor quality and collectability of £26,209 in trade and other debtors given absence of cash reserves.
• Review company cash flow statements and forecasts (not available here) to evaluate how the company plans to address liquidity deficits.
• Confirm whether any contingent liabilities or off-balance-sheet financing exists that could further affect solvency.
• Understand management plans to return to profitability and reduce net liabilities.