BRIDGE TO INDEPENDENCE LIMITED

Executive Summary

Bridge To Independence Limited is a small, active social work service provider with a modest balance sheet and limited cash reserves. While the company maintains positive net assets and current assets exceed liabilities, the very low cash position and reliance on debtors for liquidity pose potential risks. Credit approval is warranted with conditions to closely monitor cash flow and operational performance.

BRIDGE TO INDEPENDENCE LIMITED - Analysis Report

Company Number: 13150080

Analysis Date: 2025-07-20 17:49 UTC

1. Credit Opinion: APPROVE with reservations. Bridge To Independence Limited is a small private limited company with a modest financial base, showing positive net current assets and net assets. However, the company’s cash on hand is minimal (£9), and debtors represent the bulk of current assets, which raises concerns about liquidity and cash flow conversion. The director’s report indicates compliance with regulatory requirements, and no adverse filings or overdue accounts exist. The company operates in social work activities without accommodation, a sector sensitive to funding and economic conditions, implying some business risk. Overall, the company appears stable but should be monitored closely for cash flow sufficiency.

2. Financial Strength: The company reports net assets of £198 at 31 January 2024, down from £282 the prior year. Shareholders’ funds are correspondingly low, reflecting minimal capital injection (£1 share capital). The balance sheet is very small in scale, consistent with a micro/small company profile. Current liabilities have decreased from £1,601 to £715, improving working capital. The company holds no fixed assets, and all current assets are short-term, mainly debtors (£904). The decline in net assets and low capitalization imply limited financial buffer to absorb shocks.

3. Cash Flow Assessment: Cash at bank is negligible (£9), a significant reduction from £1,883 the previous year, indicating a potential strain on immediate liquidity. The company relies heavily on debtors (£904) to fund short-term obligations (£715). The net current assets of £198 provide some cushion, but the low cash balance suggests that debtor collections or additional financing will be critical to meet ongoing expenses. The absence of audit and limited disclosures restrict deeper cash flow analysis, but the data suggests tight liquidity management is required.

4. Monitoring Points:

• Liquidity position: Monitor cash balances and debtor collection efficiency closely.
• Profitability trends: Track turnover and profit levels once full P&L data is available.
• Working capital changes: Watch for increases in liabilities or stagnant/decreasing current assets.
• Operational performance: Assess ongoing contract completions and revenue recognition given the service nature.
• Director actions: Continue review of compliance and any changes in management or ownership.