BRADSTONE DEVELOPMENTS LTD

Executive Summary

Bradstone Developments Ltd is a small, young construction-related company with limited financial history but showing a notable decline in net assets over the last year. While liquidity appears adequate for current liabilities, the reduced equity base and shrinking working capital warrant cautious credit approval with ongoing monitoring. Conditional approval is recommended, subject to further financial clarity and risk mitigation measures.

BRADSTONE DEVELOPMENTS LTD - Analysis Report

Company Number: 14077959

Analysis Date: 2025-07-29 17:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bradstone Developments Ltd is a very recently incorporated micro-entity (since April 2022) operating in joinery installation and construction sectors. The company shows a significant decline in net assets from £83,232 in 2023 to £32,452 in 2024, pointing to a material reduction in financial strength over the last year. While the business is active and directors hold significant control with no adverse records, the sharp asset reduction raises concerns about recent profitability or asset write-downs. Given the small scale and limited operating history, credit approval should be conditional on close monitoring and possibly guarantees or collateral to mitigate risk.

2. Financial Strength:
   The balance sheet shows a modest fixed asset base (£15k) and current assets of £50k against current liabilities of £22k, yielding positive net working capital of £28k as of March 2024. However, this is a sharp decline from net current assets of £79k the prior year. Total liabilities including longer-term creditors stand at ~£32.6k, resulting in equity of £32.5k, down from £83.2k. The drop in net assets suggests either losses incurred or asset impairments. The company remains solvent but with reduced financial buffers.

3. Cash Flow Assessment:
   Current assets mainly comprise cash, receivables, or stock totaling £50k, which covers current liabilities comfortably. Positive net current assets indicate adequate short-term liquidity, but the halving of this metric compared to last year implies tightening working capital. With only 2 employees, operating expenses may be low, but cash flow from operations should be scrutinized due to the recent decline in asset base. No audit or detailed cash flow statements are available, limiting full assessment.

4. Monitoring Points:

• Profitability trends and reasons behind the decline in net assets and current assets.
• Cash flow sufficiency to meet liabilities and support ongoing operations.
• Receivables aging and stock turnover to confirm working capital quality.
• Any changes in directors or PSCs that might affect strategic direction or credit risk.
• Timely filing of future accounts and confirmation statements to ensure compliance.