BRBN ROMFORD LIMITED

Executive Summary

BRBN Romford Limited is a newly formed real estate company with significant investment properties funded primarily by debt. The company’s equity base is minimal, and it depends heavily on rental income and parent company support to service its liabilities. Conditional credit approval is recommended pending satisfactory review of cash flow forecasts and operational performance.

BRBN ROMFORD LIMITED - Analysis Report

Company Number: 15879723

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL BRBN Romford Limited is a newly incorporated private limited company (incorporated August 2024) engaged in real estate investment and letting. The company holds fixed assets (investment properties) of £5.59 million financed largely by long-term liabilities of £5.63 million, mainly comprising bank loans and amounts owed to the parent company. Shareholders’ funds are minimal at £14.6k, reflecting the early stage of operations and limited equity injection. Given the asset-backed nature of the business and the presence of a controlling parent company (Noga Holdings Limited with 75-100% ownership), the company shows potential to service its debt provided rental income and cash flow develop as anticipated. However, credit approval should be conditional on receiving a detailed business plan, rent roll, and cash flow projections to confirm income streams and debt servicing capacity.

2. Financial Strength: The balance sheet is heavily leveraged, with fixed assets financed by a combination of bank loans (£3.64 million), other creditors (£0.32 million), and amounts owed to the parent company (£1.67 million). Current assets are minimal (£51k) and current liabilities are low (£3.5k), resulting in positive net current assets of £47.8k. The company’s net assets are very small (£14.6k), indicating a very thin equity base. The reliance on debt, particularly intercompany funding, requires careful monitoring. The investment properties represent long-term tangible assets expected to generate income, but the company’s financial strength is currently weak due to its early stage of trading and low equity cushion.

3. Cash Flow Assessment: Cash at bank is modest at £27.4k, with debtors of £24k, providing limited short-term liquidity. Current liabilities are very low (£3.5k), so the company currently has adequate working capital. However, the company will need consistent cash inflows from rental income or sales to meet interest and principal repayments on its significant long-term debt of £5.63 million. The absence of historical trading results and profit & loss data makes cash flow forecasting critical. Liquidity risk is moderate to high until stable and predictable cash flows are established.

4. Monitoring Points:

• Rental income and occupancy rates for the investment properties.
• Timely repayment of interest and principal on bank loans and intercompany debt.
• Changes in property market valuations impacting asset values and potential security.
• Parent company support and any changes in intercompany loan terms.
• Filing of annual accounts and confirmation statements on time to ensure regulatory compliance.
• Cash flow forecasts and variance analysis against business plan assumptions.