BRIANCARE LIMITED

Executive Summary

Briancare Limited is a very small private limited company operating in residential care with limited asset backing and low liquid assets, presenting moderate liquidity risk. While net assets appear positive due to accounting treatment, actual cash flow may be constrained, suggesting lending should be conditional on close financial monitoring and potential director support. The company’s financial trajectory and operational performance need further data for a more robust credit assessment.

BRIANCARE LIMITED - Analysis Report

Company Number: 13099803

Analysis Date: 2025-07-20 15:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Briancare Limited is a micro-entity with limited financial data but shows a positive net asset position as of the latest year-end. However, the company’s current assets are very low (£981 in 2023), and the prepayments and accrued income are significant (£19,861), which may not be readily convertible to cash. The current liabilities stand at £7,538, which exceeds the current assets excluding prepayments, indicating potential liquidity risk. Given the small scale of operations and minimal working capital, lending should be considered with caution and possibly secured or supported by personal guarantees. The director is also the sole significant controller, which centralizes control but may limit management depth.

2. Financial Strength:
   The balance sheet indicates net assets of £13,304 in 2023, up from £1,208 in 2022, supported mainly by prepayments and accrued income rather than fixed or liquid assets. There are no fixed assets, and the share capital is nominal (£1.00). Net current assets improved significantly, but this appears driven by accounting treatment of prepayments rather than operational cash or receivables. The company is in the residential care sector (SIC 87200), which may have steady demand, but the financial base is fragile due to minimal tangible asset backing.

3. Cash Flow Assessment:
   Cash and other liquid assets are minimal, and the company's current liabilities exceed its cash holdings, which raises concerns about short-term liquidity and the ability to meet immediate obligations without external support. The large prepayments may represent deposits or payments for services but are not cash inflows. Working capital is thus constrained, potentially requiring close monitoring. The company’s ability to generate positive operating cash flow needs further scrutiny, as the accounts do not disclose turnover or profit figures.

4. Monitoring Points:

• Liquidity ratios and cash flow statements on future filings to assess actual cash generation and availability.
• Changes in current liabilities and prepayments to understand underlying operational risks.
• Director’s financial support or external financing arrangements to cover working capital gaps.
• Business growth indicators such as turnover and profitability once available, to evaluate repayment capacity.
• Any changes in ownership or management structure that may affect governance and financial control.