B 5 LIMITED
Company number 02561658 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: B 5 LIMITED (02561658)
1. Risk Rating: HIGH
The company exhibits clear indicators of financial distress. As of 31 December 2025, shareholders' funds have deteriorated to -£288,738, meaning liabilities exceed assets. This represents a decline of approximately £1.58 million in equity over nine years (from £1.29M in 2016). Current liabilities exceed current assets by £288,738, creating a working capital deficit that calls into question the company's ability to continue as a going concern without external support.
2. Key Concerns
Insolvency Risk – Negative Net Assets The company is technically insolvent on a balance sheet basis. Shareholders' funds moved from a positive £236,607 (2024) to negative £288,738 (2025), a deterioration of over £525,000 in a single year. Total liabilities of £1,864,454 now exceed total assets of £1,575,716. Under UK insolvency law, directors must consider whether the company can continue trading, and continuing to trade while insolvent can expose directors to personal liability for wrongful trading.
Severe Liquidity Constraints Historical data reveals chronically low cash reserves—£326 (2019), £3,317 (2020), and £7,221 (2021). With current liabilities of £1.86M falling due within one year and no indication of significant cash generation, the company appears heavily reliant on creditor forbearance and director support. The working capital deficit of £288,738 means the company cannot cover short-term obligations from current assets.
Director Loan Transactions During Insolvency The 2025 accounts show that credit balances owed to three directors (R A name shown to subscribers: £15,350, J P name shown to subscribers: £15,054, A P name shown to subscribers: £18,190) were cleared during the year, with corresponding "amounts advanced" entries that offset these balances. Meanwhile, the company moved into negative equity. Repaying or settling director debts while the company is insolvent raises serious concerns about potential preferential treatment of connected creditors over other creditors.
3. Positive Indicators
Long-standing Entity: Incorporated in 1990, the company has operated for over 34 years, suggesting resilience and historical viability within the name shown to subscribers family structure.
Regulatory Compliance: Accounts and confirmation statements are filed on time and not overdue. The company maintains its registered status and has not attracted regulatory sanctions.
Property Asset Base: Given the SIC code (41100 – Development of building projects) and the asset values involved, the company likely holds property assets. Property may carry value not fully reflected in historical cost accounts, and could potentially be realised to address liabilities.
Family Commitment: Multiple name shown to subscribers family members serve as directors and secretaries, with two PSCs (name shown to subscribers and name shown to subscribers) each holding 25-50% ownership. This concentrated ownership structure may indicate willingness to support the company through difficult periods.
4. Due Diligence Notes
Going Concern Assessment: The filed accounts contain no visible going concern note or director commentary on solvency. It is critical to establish whether directors have provided formal assurances or commitments to support the company's continued operation, and whether any such support is documented and enforceable.
Nature and Valuation of Assets: The £1.58M in current assets requires clarification. Given the business classification and zero employees, this likely comprises property held for development or investment. Independent valuation of these assets is essential to determine whether realisable value exceeds book value and could address the solvency deficit.
Creditor Composition: The identity and priority of the £1.86M in creditors must be established. How much is owed to directors versus third-party creditors? Are any debts secured? The B A name shown to subscribers outstanding balance of £25,390 suggests ongoing director funding, but the total related-party creditor position is unknown from micro-entity accounts.
Director Loan Settlements: The clearing of three directors' credit balances in 2025 warrants detailed investigation. Specifically: were these genuine repayments, or were they offset against other obligations? Were they made at a time when the company was already insolvent? Could these transactions be challenged as preferences in any future insolvency proceeding?
Operational Activity: With zero employees for consecutive years, the company's actual trading activity is unclear. Is this an active development company, a passive property holding vehicle, or a dormant entity awaiting project commencement? This distinction materially affects risk assessment.
Asset Trajectory: Total assets have declined from £2.45M (2021) to £1.58M (2025). Understanding whether this reflects asset disposals, depreciation, or impairment write-downs is important for assessing whether the decline is likely to continue.