BREWERS PROPERTY SOLUTIONS LTD

Executive Summary

Brewers Property Solutions Ltd is currently in a financially precarious position, marked by significant negative working capital and net assets just over one year since incorporation. The company shows symptoms of liquidity distress typical of early-stage ventures yet to stabilise cash flows or build asset strength. Immediate capital injection and strict cash flow management are critical to improve financial health and avoid insolvency risk.

BREWERS PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 15512462

Analysis Date: 2025-07-29 20:17 UTC

Financial Health Assessment for Brewers Property Solutions Ltd

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1. Financial Health Score: D

Explanation:
The company is in a fragile financial state, primarily indicated by a significant negative net asset position and working capital deficit. While still in the early stage of operation (incorporated 2024), the financial "vital signs" suggest symptoms of distress that require urgent management attention to prevent further deterioration.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	930	Minimal liquid assets/cash on hand — very low for operational needs.
Current Liabilities	34,070	Short-term debts due within one year — significant liability burden.
Net Current Assets	-33,140	Negative working capital — company cannot cover short-term debts with current assets.
Net Assets (Shareholders' Funds)	-33,140	Company has negative equity, indicating liabilities exceed assets.
Average Number of Employees	0	No employees yet — typical for a start-up but limits operational capacity.

Interpretation:

• The negative net current assets is a key symptom of liquidity strain, suggesting the company is potentially unable to meet its short-term obligations as they fall due.
• The negative net assets point to an insolvency risk if this condition persists, as the company’s debts exceed its assets.
• The very low current assets indicate a lack of "healthy cash flow" reserves or assets easily convertible to cash, which can exacerbate financial vulnerability.
• The absence of employees reflects early-stage operations but also implies no operational income generation yet.

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3. Diagnosis

Brewers Property Solutions Ltd is in the nascent phase of its business lifecycle, having operated just over one year since incorporation. The financial readings resemble a patient showing clear signs of distress:

• Liquidity Crisis: The negative working capital signals an inability to cover immediate debts, akin to a patient with dangerously low blood pressure, requiring immediate stabilising action.
• Balance Sheet Weakness: Negative equity is a "chronic condition" indicating the company’s financial foundation is delicate and currently "underweight" in terms of assets versus liabilities.
• Operational Status: No employees and minimal current assets suggest the company is still in its start-up phase without generating operational revenues or building asset strength.
• Risk of Insolvency: Without an immediate infusion of capital or improvement in cash flow, the company risks insolvency or may face pressure from creditors.

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4. Recommendations

• Capital Injection: To counter the deficit (negative equity and working capital), encourage shareholders or external investors to inject fresh equity or convertible debt. This is akin to providing a transfusion to restore vital signs.
• Cash Flow Management: Develop a detailed cash flow forecast and control short-term expenses tightly. Prioritise payments to critical creditors to avoid legal enforcement actions.
• Operational Plan: Initiate revenue-generating activities promptly. Consider hiring or contracting key personnel to build operational capacity and start generating income streams.
• Financial Monitoring: Implement frequent financial reviews and early warning systems to detect liquidity issues before they escalate.
• Professional Advice: Seek advice from insolvency practitioners or turnaround specialists if cash flow issues worsen, to explore restructuring or protection options.
• Stakeholder Communication: Maintain transparent, proactive communication with creditors, investors, and directors to build confidence and negotiate terms where needed.

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Executive Summary