Company Number: 12576544

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: HIGH

Justification: BS Portal Limited exhibits a significant and growing negative net asset position, with net liabilities worsening from £72,965 in 2023 to £89,011 in 2024. Current liabilities (£150,845) vastly exceed current assets (£185), indicating severe liquidity constraints. The company relies heavily on bank loans (£74,067) and other creditors, with minimal cash on hand (£185). These factors point to a high risk of insolvency or inability to meet short-term obligations without further financing.

2. Key Concerns:

• Severe Negative Working Capital: The company’s net current liabilities of approximately £150k suggest it does not have sufficient liquid resources to cover short-term debts, representing a major liquidity risk.
• Growing Net Liability Position: The shareholder deficit has increased materially year-on-year, indicating ongoing losses or erosion of equity that threaten solvency.
• Dependence on Bank Loans and Creditors: Over 49% of current liabilities are bank loans, and other creditors have increased, suggesting potential refinancing risk or creditor pressure.

3. Positive Indicators:

• Intangible Assets of Development Costs: The company holds intangible assets valued at £61,649, reflecting investment in development, which may provide future economic benefits.
• No Overdue Filings: Accounts and confirmation statements are filed on time, demonstrating regulatory compliance and governance discipline.
• Single Director with Full Control: Clear ownership and control by the director may allow for swift decision-making and strategic responsiveness.

4. Due Diligence Notes:

• Cash Flow Forecasts and Financing Plans: Investigate the company’s plans to manage liquidity, meet creditor demands, and whether additional capital injections or refinancing are anticipated.
• Nature and Recoverability of Intangible Assets: Assess the likelihood that development costs will generate future returns or need impairment.
• Bank Loan Terms and Covenants: Review loan agreements for repayment schedules, covenants, and risk of default.
• Profit & Loss Account Details: Obtain underlying profit and loss data to understand causes of losses and operating performance trends.
• Director and Related Party Transactions: Verify any transactions or guarantees provided by the sole director that could affect company risk.