Company Number: 13058600

Analysis Date: 2025-07-20 12:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CDC Bespoke Properties (Bromsgrove) Limited shows a developing asset base with significant stock growth over the last year, indicating active project development in their building projects sector. However, the company carries a substantial bank loan (£1.06m) due in 1-2 years, which has increased markedly from the prior year (£160k), creating a considerable future repayment obligation. The company has limited cash reserves (£1.9k) and debtors (£10.7k), with working capital primarily tied up in stock (£1.42m). The director has provided a personal guarantee on part of the loan (£334,750), which partially mitigates credit risk. Approval is conditional on monitoring the company’s ability to convert stock into cash or sales proceeds to meet loan obligations as they fall due, and on assurances regarding repayment plans or refinancing.

2. Financial Strength
   The balance sheet shows net assets of £213,924, down from £264,311 in the prior year, driven largely by the increase in long-term bank loans. Current assets have grown substantially (£1.43m vs. £578k), primarily due to stock increases (£1.42m vs. £561k), indicating ongoing project investment. Current liabilities remain stable at around £153k. Despite solid net current assets (£1.27m), the significant reliance on stock as a current asset presents liquidity risks if projects do not sell promptly. Share capital remains minimal (£100), and the company is controlled fully by its parent, CDC Bespoke Properties Ltd, to which it owes £148,425. Overall, the financial strength is moderate due to leverage and asset concentration in stock.

3. Cash Flow Assessment
   Cash and equivalents are very low at £1,856, suggesting limited immediate liquidity. Debtors are minimal (£10,725), so cash inflows from receivables are unlikely to provide significant relief. Working capital is positive on paper but heavily weighted in stock, which may be illiquid or slow to convert to cash. The increase in bank loans indicates external funding is supporting operations, but repayment obligations of over £1m within 1-2 years are significant relative to current liquidity. The personal guarantee by the director offers some comfort on loan repayment risk. Cash flow to service debt will depend heavily on successful sales of property developments and efficient stock turnover.

4. Monitoring Points

• Stock turnover and realizable value: Monitor progress on selling or completing building projects to ensure stock can be converted to cash timely.
• Bank loan repayment schedule and refinancing options: Clarity on how the company plans to meet or refinance the £1.06m debt due within 1-2 years.
• Cash flow statements: Regular review of operational cash generation and liquidity position.
• Related party balances: Monitor amounts owed to the parent company and terms of repayment to understand intra-group funding reliance.
• Director guarantees: Ensure the personal guarantee remains enforceable and sufficient relative to loan balances.