BSF1 LIMITED

Executive Summary

BSF1 Limited is a newly formed holding company with limited operating history and insufficient liquidity to cover short-term liabilities. Its financial strength is concentrated in subsidiary investments, but negative working capital and minimal cash raise concerns about its ability to meet debt obligations. Credit approval is not recommended at this stage without further evidence of cash flow generation or financial support.

BSF1 LIMITED - Analysis Report

Company Number: 15961370

Analysis Date: 2025-07-29 14:24 UTC

1. Credit Opinion: DECLINE
   BSF1 Limited is a newly incorporated holding company with minimal operational history and limited financial activity. The company's balance sheet shows a negligible cash balance (£36) against current liabilities of £3,600, resulting in a working capital deficit of £3,564. The fixed assets consist exclusively of investments in subsidiaries valued at £1.76 million, but there are no disclosed earnings, cash flows, or profit and loss statements to indicate the capacity to service debt or meet obligations. The absence of trading history and liquidity raises concerns about the company's ability to repay loans or honor commercial agreements at this early stage.

2. Financial Strength:
   The company’s financial position is asset-heavy, with shareholders’ funds of £1.76 million primarily represented by investment in subsidiaries. However, current liabilities exceed current assets leading to negative net current assets. The capital structure is modest with only £72 in share capital, and retained earnings appear as a large figure but likely represent accounting adjustments rather than operational profitability given the company’s recent formation. Lack of diversification in assets and reliance on subsidiary investments without corresponding cash or receivables weakens financial resilience.

3. Cash Flow Assessment:
   Liquidity is extremely constrained, with only £36 in cash and no current assets besides that. Current liabilities of £3,600 must be met shortly but are not supported by liquid assets. The negative working capital position signals potential short-term cash flow difficulties. Without evidence of cash generation or external financing, the company is vulnerable to liquidity risk.

4. Monitoring Points:

• Development of operating cash flow and profitability in subsequent periods.
• Changes in current liabilities and liquidity position.
• Performance and financial health of subsidiaries underpinning the investment value.
• Any capital injections or financing arrangements to improve working capital.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.