Company Number: 13120347

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Brit Tax Ltd. shows some operational continuity and small asset growth, but it maintains negative net assets and shareholders’ funds, indicating an accumulated deficit. The company’s current liabilities exceed current assets, resulting in negative working capital, which raises concerns about short-term liquidity and debt servicing ability. However, cash balances have improved year-on-year, and the director has professional accounting expertise, which supports reasonable financial stewardship. Approval is conditional on monitoring liquidity closely and obtaining assurances on cash flow management and potential capital injection or profitability improvement plans.

2. Financial Strength:

The company’s balance sheet reveals negative net assets of £2,890 as at 31 January 2024, an improvement from £8,356 negative net assets the previous year. Tangible fixed assets increased to £6,336, reflecting investment in plant and machinery. However, net current liabilities remain at £9,226, indicating ongoing working capital deficits. Share capital is minimal at £100, suggesting limited equity buffer. The negative retained earnings point to historical losses and insufficient profitability to build reserves.

3. Cash Flow Assessment:

Cash increased from £18,022 to £26,696, showing better liquidity management or cash generation. Yet, current liabilities rose to £35,922, mostly other creditors, which could pressure short-term repayment capacity. Negative net current assets imply reliance on creditor financing or external funding to meet obligations. The company should maintain strong controls on receivables and payables and consider short-term financing solutions to avoid liquidity strain.

4. Monitoring Points:

• Working capital trends and ability to reduce current liabilities relative to current assets.
• Profitability improvements reflected in retained earnings over the next reporting period.
• Cash flow statements to verify operational cash generation and sufficiency for debt servicing.
• Director’s management actions to strengthen equity or reduce losses.
• Timely filing of accounts and returns to ensure regulatory compliance.