Company Number: 13685485

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   St Austell Bess Ltd is a very young micro-entity operating in building project development since 2021. The company shows a small but negative net working capital position (£-7,700) as of its latest accounts (Oct 2023), indicating marginal liquidity stress. Current liabilities slightly exceed current assets, suggesting potential short-term cash flow constraints. However, there is no overdue filing or indication of insolvency, and the company has a stable director group with relevant experience. Given the limited trading history and negative equity, credit approval is conditional on close monitoring, possibly supported by guarantees or additional collateral.

2. Financial Strength:
   The balance sheet is very modest with no fixed assets reported and working capital slightly negative at £-7,700. Shareholders' funds are also negative, reflecting accumulated losses or initial investment write-downs. The company’s total asset base is essentially current assets (cash/debtors) and liabilities are almost equal in amount. There is no evidence of long-term capital or retained earnings. The micro-entity status limits detailed financial disclosures but the lack of tangible net assets suggests limited financial buffer against adverse trading conditions.

3. Cash Flow Assessment:
   Current assets increased substantially from £148,681 in 2022 to £844,898 in 2023, but current liabilities also increased proportionally, leading to a net current liability position. This signals the company is potentially relying on short-term funding or creditor extensions to finance its operations. The negative net current assets imply possible liquidity risk and a need for close scrutiny of cash flow statements (not provided) and creditor terms. Working capital management appears tight and may constrain operational flexibility under stress.

4. Monitoring Points:

• Quarterly updates on cash flow and working capital position to detect worsening liquidity.
• New contract wins or project pipeline given the development sector exposure.
• Changes in director appointments or ownership structure, especially given recent rapid director turnover.
• Timely filing of annual accounts and confirmation statements to avoid compliance risk.
• Any related party transactions or shareholder loans that may impact financial structure.