BRIDGE INVESTMENT GROUP LIMITED

Executive Summary

Bridge Investment Group Limited maintains solvency with positive equity but is facing liquidity challenges due to low cash reserves and high current liabilities. The significant drop in working capital and shareholders' funds signals emerging financial stress, making enhanced cash flow management and profitability review imperative for a healthier financial future.

BRIDGE INVESTMENT GROUP LIMITED - Analysis Report

Company Number: 13147397

Analysis Date: 2025-07-29 20:43 UTC

Financial Health Assessment for BRIDGE INVESTMENT GROUP LIMITED (Year ended 31 March 2024)

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1. Financial Health Score: C

Explanation:
The company shows signs of financial stability but with some cautionary flags. It maintains positive net current assets and shareholders' funds, indicating a solvent position. However, a significant decline in cash reserves and a high level of current liabilities relative to current assets suggest liquidity pressure — akin to a patient with stable vital signs but early symptoms of circulatory strain. The absence of an income statement limits insight into profitability, which restrains a higher grade.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	549,656	Healthy level of assets available to cover short-term obligations, primarily debtors.
Cash at Bank	2,824	Very low cash balance, a symptom of potential liquidity strain or tight cash flow management.
Debtors	546,832	Large proportion of current assets tied up in receivables, indicating cash flow may depend on collections.
Current Liabilities	513,204	High short-term obligations; close to current assets, which could stress liquidity if debtors are delayed.
Net Current Assets (Working Capital)	36,452	Positive but sharply decreased from prior years, signaling reduced operational cushion.
Shareholders’ Funds (Equity)	37,539	Positive equity confirms solvency, but a marked decrease from £118,491 the previous year signals retained earnings erosion or losses.

Additional Notes:

• The company is classified as a small private limited company in the holding company sector (SIC 64209).
• There is minimal fixed asset investment (£1,087), showing an asset-light model typical of holding companies.
• The directors remain the same since inception, suggesting stable management.
• The company is not overdue on filings and is current with statutory obligations, indicating good compliance health.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Symptoms:
  The very low cash balance (£2,824) versus large current liabilities (£513,204) is a key symptom of distress in liquidity. While the company holds substantial receivables (£546,832), the ability to convert these into cash quickly is critical. The drop in cash from £110,192 (previous year) to £2,824 is a red flag and may indicate difficulties in converting assets to cash or increased cash outflows.

• Working Capital Shrinkage:
  Net current assets have decreased by about 69% from £117,477 to £36,452. This reduction in working capital—a company’s buffer to meet short-term obligations—reflects a tighter operational financial position.

• Equity Erosion:
  Shareholders’ funds have decreased significantly from £118,491 to £37,539, a symptom indicating the company may have suffered losses or dividends exceeding profits retained in the business. This accumulation of deficits signals a weakening financial foundation.

• Business Model Considerations:
  As a holding company with minimal fixed assets and significant intercompany balances (amounts owed by group undertakings), the balance sheet is heavily reliant on group transactions. This reliance requires monitoring the financial health of subsidiaries and the timing of intercompany settlements.

• Risk of Cash Flow Strain:
  The combination of low cash, high debtors, and current liabilities poses a risk of cash flow strain—akin to a patient with adequate oxygen levels but compromised circulation, requiring careful management to avoid acute crises.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Cash Flow Management:

   • Accelerate debtor collections to convert receivables into cash more quickly.
   • Review payment terms with suppliers and creditors to extend cash outflow timing where possible.

2. Strengthen Working Capital:

   • Consider short-term financing options (e.g., revolving credit facilities) to bolster liquidity and avoid cash shortages.
   • Monitor closely intercompany balances and ensure timely settlements within the group.

3. Profitability Assessment and Cost Control:

   • Although income statement details are not filed, directors should internally review profitability and expenses to identify loss-making areas and reduce unnecessary costs.

4. Equity and Capital Structure:

   • Evaluate the need for capital injections or shareholder loans to strengthen equity and provide a buffer against future losses.
   • Maintain transparent communication with shareholders and creditors regarding financial health and plans for recovery.

5. Regular Financial Monitoring:

   • Implement more frequent internal financial reviews (monthly or quarterly) to detect early warning signs and respond proactively.
   • Engage with financial advisors to explore restructuring or strategic options if losses persist.

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Summary

BRIDGE INVESTMENT GROUP LIMITED is currently solvent but showing early symptoms of financial strain, particularly with liquidity and erosion of retained earnings. The company’s reliance on receivables and low cash reserves highlight the need for improved cash flow management. Strengthening working capital and reviewing profitability will be crucial to maintaining financial health and avoiding more serious distress.