Company Number: 15223013

Analysis Date: 2025-07-29 20:07 UTC

1. Risk Rating: HIGH

Justification: BSD Holdings Ltd exhibits significant net current liabilities and negative shareholders' funds despite holding substantial fixed assets. The company has a large secured bank loan exceeding its net assets and current liabilities surpassing current assets, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds (-£50,742) suggest the company is currently insolvent on a balance sheet basis.
• Net Current Liabilities of -£365,917 indicate potential short-term liquidity problems to meet obligations when due.
• Heavy reliance on secured bank loans (£984,825) exceeding the net assets, raising concerns about debt servicing and refinancing risk.

3. Positive Indicators:

• The company holds tangible fixed assets (investment property) valued at £1.3 million, indicating potential asset backing.
• No overdue filings and current compliance with Companies House requirements reduce regulatory risk.
• Ownership and control are concentrated with a known director and controlling party, which may facilitate decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the secured bank loan, including maturity, interest rates, and covenants.
• Review the valuation and marketability of the investment property to assess realisable value.
• Examine cash flow forecasts and debtor collection performance to evaluate liquidity management.
• Confirm any contingent liabilities or off-balance sheet exposures.
• Assess the business model sustainability given the negative equity and short operating history (incorporated Oct 2023).