BRENCO CCM LTD

Executive Summary

Brenco CCM Ltd displays weak financial health with sustained negative equity and working capital deficits, indicating poor ability to meet debt obligations. The company’s financial trajectory is declining, lacking operational scale and cash flow strength. Credit facilities should be declined until significant improvement in financial position and liquidity is demonstrated.

BRENCO CCM LTD - Analysis Report

Company Number: 13250024

Analysis Date: 2025-07-20 17:00 UTC

1. Credit Opinion: DECLINE
   Brenco CCM Ltd presents a concerning credit profile. The company is relatively new, incorporated in 2021, and has consistently reported net liabilities and negative shareholders' funds over four consecutive years. The net asset position deteriorated from -£18,490 in 2023 to -£35,863 in 2024, indicating worsening financial health. Current liabilities exceed current assets, creating a negative working capital position and raising liquidity concerns. The company's inability to generate positive net assets or working capital suggests it lacks the financial resilience to service debt obligations reliably. Without significant improvement in profitability or capital injection, the risk of default is high. Therefore, credit facilities are not advisable at this stage.

2. Financial Strength:
   The balance sheet shows substantial weakness. Fixed tangible assets are minimal (£161) and provide limited collateral value. Current liabilities stand at £15,199 against negligible current assets (prepayments only) resulting in a negative net current asset position of -£15,199. Additionally, significant non-current liabilities of £20,825 further burden the company. The negative shareholders’ funds of -£35,863 reflect accumulated losses and inadequate equity capital, undermining financial stability. This negative equity position signals that creditors’ claims exceed the value of total assets, which is a red flag for credit risk.

3. Cash Flow Assessment:
   The financial statements do not disclose explicit cash flow data, but the negative net current assets imply working capital shortfalls that could strain day-to-day operations and cash liquidity. The absence of debtors and reliance on trade creditors, accruals, and other creditors to finance operations indicate tight liquidity. The lack of employees and minimal tangible assets suggest limited operational scale and possibly constrained cash inflows. Without positive cash generation or external capital, the company’s ability to meet short-term obligations is doubtful.

4. Monitoring Points:

• Improvement in net asset position and shareholder equity through profitability or capital injection.
• Reduction of current and non-current liabilities relative to assets.
• Generation of positive cash flows from operations to ease liquidity pressures.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Director’s strategic plans for financial turnaround or restructuring.