BLUEBRICKS HOMES LTD

Executive Summary

BLUEBRICKS HOMES LTD exhibits significant solvency and liquidity risks with persistent negative equity and insufficient current assets to cover liabilities. While compliance with filing requirements is positive, the low turnover and ongoing losses raise concerns about the company’s operational sustainability. Further investigation into creditor terms and management strategy is recommended before considering investment.

BLUEBRICKS HOMES LTD - Analysis Report

Company Number: 12754859

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net asset value and accumulated losses over multiple years, indicating solvency concerns. Current liabilities exceed current assets significantly, suggesting liquidity challenges. The absence of fixed assets and minimal turnover further point to operational instability.

2. Key Concerns:

• Negative Equity Position: Shareholders' funds are deeply negative (£-22,074 as of 2023), indicating the company’s liabilities exceed its assets substantially.
• Liquidity Mismatch: Current assets (£1,000) are insufficient to cover short-term liabilities, and there are significant creditors due after one year (£23,075), raising questions about the company’s ability to meet obligations as they fall due.
• Operational Performance: Turnover remains very low (£15,888 in 2023), with ongoing losses each year. The business has not demonstrated growth or profitability since incorporation in 2020.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is up to date with its accounts and confirmation statement filings, with no overdue returns, indicating regulatory compliance.
• Single Director Control: The company is controlled by a single director and 100% shareholder, which may simplify decision-making and allow for agile management responses.
• Micro Entity Status: Being a micro-entity reduces administrative burden and costs, which might help in managing expenses.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors (£23,075) to assess repayment schedules and potential refinancing risks.
• Review cash flow statements or management accounts, if available, to understand the company’s operational cash generation or reliance on external funding.
• Clarify the company’s business model and growth strategy given the low turnover and continued losses, and assess if the company has access to additional capital or shareholder support.
• Confirm if there are any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.
• Assess the director’s track record and financial commitments to the company, since sole control implies significant personal responsibility for solvency.