BSD HOLDINGS LTD

Executive Summary

BSD Holdings Ltd, a recently incorporated private company operating in real estate trading, currently shows financial strain with negative net assets and significant net current liabilities. The company's substantial secured debt and liquidity shortfall present elevated solvency risks despite holding sizeable investment property assets. Further investigation into debt terms, asset valuations, and cash flow projections is advisable to clarify financial stability and operational viability.

BSD HOLDINGS LTD - Analysis Report

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).