BRIAN 2 FAB CONSTRUCTION LTD

Executive Summary

BRIAN 2 FAB CONSTRUCTION LTD is a newly established small construction manufacturing company with a weak financial base and limited liquidity. While it has shown some improvement in working capital and cash holdings, the company remains financially fragile with minimal equity and reliance on finance leases. Credit should be extended cautiously with conditions to mitigate risk and ongoing monitoring of cash flow and operational performance.

BRIAN 2 FAB CONSTRUCTION LTD - Analysis Report

Company Number: 14124994

Analysis Date: 2025-07-20 15:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BRIAN 2 FAB CONSTRUCTION LTD is a very young private limited company in the manufacturing sector (builders' carpentry and joinery). The company shows a minimal equity base (£1), negative net current assets (-£1,635 as of May 2024), and limited cash (£4,731) against current liabilities (£16,222). Additionally, it carries medium-term lease obligations of £6,050. The overall financial position is weak, reflecting limited financial resilience and working capital constraints. However, the company has improved its net current liabilities since 2023 and maintains a small but positive net asset position. Given its early stage and small scale, credit facilities could be approved with tight controls, short terms, and possibly additional security or guarantees.

2. Financial Strength
   The balance sheet shows low shareholder funds (£1) and tangible fixed assets of £7,686 net, primarily plant, machinery, and computer equipment. Total assets less current liabilities improved from near zero in 2023 to £6,051 in 2024, but this is largely offset by £6,050 in finance lease obligations falling due after one year, leaving net assets at £1. The company’s negative working capital and reliance on finance leases suggest limited buffer to absorb financial shocks. There is no retained profit or reserves reported, indicating that the business is still in initial growth or investment phase without accumulated earnings.

3. Cash Flow Assessment
   Current liabilities exceed current assets by £1,635, indicating a working capital deficit, although this is a significant improvement from the previous year’s deficit of £9,359. Cash on hand increased from £1 to £4,731, which is a positive sign but remains low relative to liabilities. Trade debtors constitute the majority of current assets (£8,952), which may pose collection risk. The company's ability to meet short-term obligations depends on timely collection of receivables and management of payables, as well as the ability to service finance lease payments. Overall liquidity is constrained, and close monitoring of cash flow is advised.

4. Monitoring Points

• Working capital trends and debtor collection efficiency
• Timely servicing of finance lease commitments and other liabilities
• Profit generation and movement in retained earnings in subsequent accounts
• Cash balances relative to current liabilities
• Any increase in share capital or external funding to strengthen equity base
• Operational performance and contract backlog in the construction sector