BRM PROJECTS LTD

Executive Summary

BRM PROJECTS LTD demonstrates high financial risk due to minimal net assets and a significant deterioration in financial position within one year. Its operational capacity appears limited, with no employees and very low asset levels. While compliance with filings is current, further investigation into liquidity, business activity, and financial sustainability is strongly recommended before considering investment.

BRM PROJECTS LTD - Analysis Report

Company Number: 14387270

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH
   Justification: The company shows extremely limited net assets (£54) and minimal current assets (£2,254) relative to current liabilities (£2,200), indicating a very tight liquidity position. The drastic decline in net assets from £1,373 in the prior year to £54 suggests financial deterioration. The absence of employees and minimal asset base raise concerns about operational sustainability.

2. Key Concerns:

• Liquidity Risk: The negligible net current assets of £54 imply the company has almost no buffer to cover short-term liabilities, risking inability to meet obligations as they fall due.
• Operational Viability: No employees and minimal fixed or current assets suggest limited ongoing business activity or capacity to generate revenue. This questions the sustainability of operations.
• Financial Stability Trend: A sharp decline in net assets from £1,373 to £54 within one year signals potential financial distress or significant losses.

3. Positive Indicators:

• Timely Compliance: The company has filed accounts and confirmation statements on time, indicating adherence to regulatory requirements.
• Single Director and PSC Alignment: Control is clearly defined with one director and one 75-100% owner, which may facilitate decisive management actions.
• No Overdue Filings or Insolvency Status: The company remains active, not in liquidation or administration, and filings are current.

4. Due Diligence Notes:

• Investigate the causes behind the sharp reduction in net assets and whether losses are ongoing or one-off.
• Review cash flow statements and any creditor arrangements to assess short-term liquidity and payment history.
• Clarify the nature of the company’s business activities given no employees and minimal assets, including revenue generation and client base.
• Confirm there are no contingent liabilities or off-balance sheet obligations.
• Assess director’s plans to improve financial position or restructure operations.