Company Number: 13550340

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: LOW
   BRC Roofing Ltd demonstrates a solid financial position for a micro-entity with positive net assets, no overdue filings, and an active operational status. The presence of long-term liabilities warrants monitoring but does not currently indicate solvency issues.

2. Key Concerns:

• Presence of Non-Current Liabilities: The £24,632 amounts falling due after more than one year (long-term creditors) increased significantly in 2024 from zero in 2023, which could pressure future cash flows if not managed prudently.
• Small Scale and Limited Employee Base: With only 2 employees on average and micro-entity status, operational scalability and resilience to market shocks may be limited.
• Fixed Asset Fluctuations: Fixed assets increased markedly from £8,166 to £33,108, suggesting recent investment or capital expenditure that should be analyzed for impact on cash flow and profitability.

3. Positive Indicators:

• Net Current Assets remain positive and healthy (£34,651 in 2024), indicating good short-term liquidity and ability to meet current liabilities.
• Shareholders’ funds and net assets remain stable (£43,127 in 2024), reflecting retained earnings and equity sufficient to support ongoing operations.
• Compliance and Governance: All statutory filings are up to date with no overdue accounts or confirmation statements, reducing regulatory risk.
• Single director with significant control appears stable and consistent since incorporation with no disqualifications noted.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£24,632) introduced in 2024 to assess repayment schedules and any covenants.
• Review the recent fixed asset acquisitions to understand the capital expenditure strategy, funding sources, and expected return on investment.
• Analyze cash flow statements (if available) to confirm operational cash generation aligns with reported asset and liability movements.
• Assess customer concentration and contract terms given the small size and specialized roofing industry to evaluate revenue sustainability.
• Verify absence of director disqualifications or adverse regulatory actions beyond the Companies House data to confirm governance integrity.