FE BSN SURGERY DEV CO LTD

Executive Summary

FE BSN SURGERY DEV CO LTD operates as a financially weak but active small property development entity heavily reliant on its parent group for working capital support. Its balance sheet shows minimal net assets and negligible cash, with current liabilities closely matching current assets primarily composed of intra-group balances. Credit approval is warranted only with conditions ensuring ongoing group backing and close monitoring of liquidity and repayment capabilities.

FE BSN SURGERY DEV CO LTD - Analysis Report

Company Number: 12762918

Analysis Date: 2025-07-20 18:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FE BSN SURGERY DEV CO LTD is a small private limited company active in property development. The company’s financials show a consistent but extremely limited net asset base (£2) and negligible cash reserves (£121 in 2024). Its current liabilities are nearly matched by current assets mainly composed of intra-group debtors and creditors. The company relies heavily on working capital support from its parent group (Frontier Estates Limited), as indicated by the significant amounts owed to and from group undertakings. Given this intercompany dependency and minimal equity, credit approval should be conditional on continued group support and a clear repayment plan for any new external borrowing.

2. Financial Strength:
   The balance sheet reflects a very weak financial position with net assets of £2 and virtually no tangible or fixed assets. The company’s capital structure is minimal, with only £2 in called-up share capital. Current assets largely consist of amounts owed by group undertakings (£36,637) and other debtors (£7,941), offset by similar amounts owed to group undertakings (£44,697). This indicates the company operates as a vehicle within a group structure rather than as an independently strong entity. There is no evidence of retained earnings or profit accumulation, pointing to a lack of internal financial strength.

3. Cash Flow Assessment:
   Cash on hand is minimal (£121), and the company’s liquidity position is tightly balanced with current liabilities nearly equal to current assets. The lack of cash and reliance on amounts owed by group companies suggest cash flow is managed at the group level rather than within the company itself. The notes confirm that working capital support is provided by the parent, which mitigates immediate liquidity risk but exposes the company to risk if group funding ceases. The average employee count is low (2), keeping operating expenses minimal, but no profit and loss accounts are filed, limiting insight into operational cash flow generation.

4. Monitoring Points:

• Continued availability and terms of working capital support from Frontier Estates Limited or other group entities.
• Timely servicing and repayment of intra-group payables if external debt is extended.
• Filing of profit and loss accounts in future periods to assess operational profitability and cash generation.
• Any changes in director appointments or ownership that may affect group support.
• The company’s ability to build equity or increase liquidity independently over time.