ABODE THE BRAMBLES LIMITED

Executive Summary

Abode The Brambles Limited’s financial position has weakened over the latest year, with net current assets and net assets approaching minimal levels, signaling potential liquidity challenges. The full repayment of a significant bank loan reduces solvency risk, but the sharp decrease in stocks warrants further investigation. The company remains compliant with statutory requirements and controlled by a single parent entity, which may provide financial support but also concentrates risk.

ABODE THE BRAMBLES LIMITED - Analysis Report

Company Number: 13885540

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM
   The company shows a significant reduction in net current assets and net assets from 2023 to 2024, from £73,410 to £1,108, indicating increased liquidity pressure. The complete repayment of a bank loan of £984,385 in the latest year improves solvency but also coincides with a large reduction in current assets, particularly stocks. The business is relatively new (incorporated 2022) and operates in a real estate letting sector, which can be capital intensive and cyclical. No overdue filings or legal issues are noted, which supports a moderate risk rating.

2. Key Concerns:

• Sharp decline in net current assets and net assets in the latest year, suggesting tight liquidity and reduced cushion to meet short-term obligations.
• Material reduction in stocks from £1,353,802 to £Nil, which may indicate asset disposals or write-downs impacting operational stability or profitability.
• Dependence on a single parent company (Abode PD Limited) owning 75-100% of shares and voting rights, concentrating control and potentially limiting operational independence.

3. Positive Indicators:

• Company is current with all statutory filings (accounts and confirmation statements), indicating compliance and good governance discipline.
• Bank loan of £984,385 fully repaid in the latest year, removing a significant financial liability and improving solvency profile.
• Directors are consistent since incorporation with no reported disqualifications or adverse conduct records.

4. Due Diligence Notes:

• Investigate reasons behind the large reduction in stocks and related impact on revenue and profitability, including any disposals, impairments, or change in business model.
• Review cash flow statements and profit & loss accounts (not included in filings) to assess operational cash generation and sustainability of current asset levels.
• Assess the strategic relationship with the parent company, including any financial support or guarantees, as the parent holds full control.
• Confirm the nature and extent of current liabilities, especially other creditors (£291,056), to understand timing and risk of payments.