BRILLIANT K LTD

Executive Summary

Brilliant K Ltd has a solid asset base but is showing signs of liquidity stress due to negative working capital. The company’s financial position has improved slightly but remains fragile, with limited short-term financial flexibility. Focused efforts on improving cash flow and managing current liabilities are essential to enhance financial wellness and avoid cash flow crises.

BRILLIANT K LTD - Analysis Report

Company Number: 14458415

Analysis Date: 2025-07-29 12:10 UTC

Financial Health Assessment for BRILLIANT K LTD

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1. Financial Health Score: C

Explanation:
The company shows a mixed financial condition. While net assets have improved from a negative position to a small positive figure, the persistent net current liabilities indicate ongoing liquidity challenges. The balance sheet also reflects reliance on fixed assets with limited working capital flexibility. Hence, a grade of C reflects a cautious outlook with room for improvement.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	348,597	Healthy asset base; significant investment in real estate
Current Liabilities	343,424	High short-term obligations; potential liquidity stress
Net Current Assets	-343,424	Negative working capital; "symptom of distress" in day-to-day cash flow
Total Assets less Current Liabilities	5,173	Marginal buffer after covering short-term debts
Net Assets (Shareholders Funds)	3,901	Small positive equity; modest cushion for creditors
Employee Count	2	Very small operation, indicating a micro entity
Account Category	Micro	Limited filing and disclosure requirements

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3. Diagnosis:

The company's financial "vital signs" show a business with significant investment in fixed assets (likely real estate given SIC codes) but a strained liquidity position due to high current liabilities exceeding current assets. This negative working capital is a key "symptom" suggesting that the company might struggle to meet short-term obligations without additional cash inflows or refinancing.

The movement from net liabilities (£-700 in 2023) to a modest net assets position (£3,901 in 2024) is positive but the margin remains thin, indicating limited financial resilience.

The business operates on a micro scale, with only two employees and minimal turnover expected. The primary controlling person holds majority ownership and voting rights, suggesting decisions can be made swiftly but also concentration risk exists.

Overall, the company's financial health is fragile but stable for now. The "healthy fixed asset base" is offset by "symptoms of liquidity distress." Without improvement in working capital, the company risks cash flow difficulties.

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4. Recommendations

• Improve Liquidity Management:
  Prioritize reducing current liabilities or converting some fixed assets to cash if possible. Consider negotiating extended payment terms with creditors or securing short-term financing to cover cash flow gaps.

• Enhance Working Capital:
  Explore ways to improve debtor collections or reduce operating expenses to build a positive net current asset position. Even small improvements in working capital can relieve pressure.

• Monitor Asset Utilization:
  Since fixed assets form the bulk of the company's value, ensure these assets are generating sufficient income or are positioned for profitable sale/leasing. Underutilized assets can drain resources.

• Maintain Compliance and Reporting:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

• Consider Strategic Planning:
  Given the micro size and concentrated ownership, consider formal business planning to evaluate growth prospects or restructuring options that could improve financial stability.

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