RIVER BEANE DEVELOPMENTS LIMITED

Executive Summary

River Beane Developments Limited is a recently incorporated construction development company showing significant leverage and minimal equity, raising solvency and liquidity concerns despite compliance with filing requirements. The company’s large stock of work in progress and controlled ownership are positive factors, but further financial detail is needed to evaluate operational sustainability and financial stability. Investors should conduct detailed due diligence on liabilities and asset realizability before engagement.

RIVER BEANE DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13992763

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: HIGH
   The company exhibits a highly leveraged financial position with current liabilities nearly equal to current assets but a significant amount of creditors due after more than one year, resulting in minimal net equity. Net assets and shareholders’ funds remain extremely low (£130), suggesting limited capital buffer and potential solvency concerns.

2. Key Concerns:

• Solvency Risk: Despite positive net current assets, the company’s net assets are only £130, and the very large long-term liabilities (£2.51M) almost fully offset total assets, indicating potential solvency strain.
• Liquidity Concerns: Cash balances are nominal (£181), which is very low relative to current liabilities (£2.51M). This could impair the company’s ability to meet short-term obligations promptly.
• Operational Sustainability: The company was incorporated in 2022 and shows limited fixed assets and minimal equity, with a financial structure highly dependent on liabilities. The absence of a profit and loss account (due to abridged filing) limits insight into operational profitability or cash flow generation.

3. Positive Indicators:

• Timely Compliance: The company is current with both accounts and confirmation statement filings, reflecting sound regulatory compliance and governance practices.
• Controlled Ownership and Management: Ownership and directorship are consolidated under a single individual, which can facilitate decision-making agility.
• Growing Asset Base: Current assets increased from £1.65M (2023) to £2.35M (2024), predominantly in stocks (work in progress), suggesting ongoing development activity consistent with the company’s SIC codes related to building development.

4. Due Diligence Notes:

• Obtain detailed profit and loss and cash flow statements to assess operational profitability and liquidity beyond balance sheet data.
• Clarify the nature and terms of the long-term liabilities (£2.51M) to evaluate repayment schedules and covenants.
• Investigate the composition and valuation methodology of stocks/work in progress (£2.34M) to understand realizability and risk of impairment.
• Assess related party transactions or guarantees, especially given single director ownership structure.
• Review director’s background and any potential risks associated with governance concentration.