BRIAN RAE ASSESSMENTS LTD

Executive Summary

Brian Rae Assessments Ltd is an active micro private limited company showing stable equity but recent short-term liquidity pressure as indicated by negative net current assets. Regulatory compliance is sound with no overdue filings, and ownership appears stable. Investors should focus on understanding the working capital changes and operational cash flow dynamics to assess financial resilience going forward.

BRIAN RAE ASSESSMENTS LTD - Analysis Report

Company Number: SC723219

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   The company shows a small but stable equity base with total shareholders’ funds around £6,900. However, the negative net current assets position in the latest year (£-1,004) indicates potential liquidity concerns that warrant monitoring.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£5,035) exceed current assets (£4,031) as of 29 February 2024, resulting in negative working capital which could strain short-term cash flows.
• Recent Downturn in Working Capital: The net current assets declined from a positive £3,066 the previous year to negative in the latest year, suggesting either increased short-term liabilities or reduced current asset realizability.
• Limited Scale and Resources: As a micro-entity with only 2 employees and modest fixed assets, the company may have limited operational flexibility to absorb shocks or finance growth.

3. Positive Indicators:

• Consistent Shareholders’ Funds: Equity remains positive and relatively stable over three years, indicating no erosion of capital base.
• Timely Compliance: No overdue filings for accounts or confirmation statements, demonstrating good regulatory compliance and governance discipline.
• Stable Ownership and Management: The director and persons with significant control have remained constant since incorporation, reducing governance risk.

4. Due Diligence Notes:

• Investigate the cause of the working capital deterioration in the latest year — whether due to increased payables, slower receivables, or inventory issues.
• Review cash flow statements if available to assess operational cash generation and short-term liquidity management.
• Confirm the nature of current liabilities and whether any are overdue or subject to refinancing risk.
• Assess the business model sustainability given the micro scale and the SIC code 71129 (other engineering activities), including client concentration and contract terms.
• Verify no director disqualifications or adverse conduct history for Brian Rae or related parties.