Company Number: 13938027

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: MEDIUM
   While Brockbox Limited is currently active and compliant with filings, the financials reveal a moderate risk profile driven by a decline in net assets and increasing long-term creditors, warranting close monitoring.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £243,934 in 2023 to £144,180 in 2024, indicating erosion of equity and potential profitability or cash flow issues.
• Rising Long-Term Creditors: Creditors due after one year increased sharply from £185,212 to £310,212, which could pressure solvency if these obligations become due and are not managed properly.
• High Debtor Balances Owed by Directors: Debtors include £227,216 owed by directors, down from £343,529 prior year, which raises questions about related party transactions and potential recovery risk.

3. Positive Indicators:

• Strong Current Asset Position: Current assets increased slightly to £413,297 with a healthy cash balance of £186,082 as at February 2024, supporting liquidity in the short term.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance.
• Going Concern Assertion: Directors affirm the company is a going concern, suggesting operational stability and management confidence.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand repayment schedules and any associated covenants or security.
• Review the composition and collectability of director-related debtor balances, including any repayment plans or risk of default.
• Assess the reasons behind the decline in net assets and whether this is due to operational losses, revaluation, or other factors.
• Confirm the company's business model and revenue streams given its classification as a holding company (SIC 64209), and evaluate the sustainability of its operations.
• Validate the independence and adequacy of the accountant's review given the exemption from audit.