BRODERICK AND SEBASTIAN LIMITED

Executive Summary

BRODERICK AND SEBASTIAN LIMITED shows signs of financial distress characterized by negative equity and high long-term debt relative to assets. The company’s liquidity position is weak, with minimal current assets to cover obligations. Strategic actions such as capital injection, debt restructuring, and improved cash flow management are essential to restore financial health and ensure sustainable operations.

BRODERICK AND SEBASTIAN LIMITED - Analysis Report

Company Number: 13548621

Analysis Date: 2025-07-20 17:45 UTC

Financial Health Assessment: BRODERICK AND SEBASTIAN LIMITED

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1. Financial Health Score: D (Poor)

Explanation:
The company exhibits symptoms of financial distress, primarily due to persistent negative equity and a high level of long-term liabilities relative to its asset base. The lack of working capital and minimal current assets compared to current liabilities further signal liquidity concerns. Although the company is still active and filing on time, its financial structure suggests vulnerability and limited financial flexibility.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Fixed Assets	148,904	Stable asset base, mostly property-related.
Current Assets	1,170	Extremely low; minimal liquid assets.
Current Liabilities	Not separately stated; short-term creditors included in total liabilities but minimal accruals (218).	Given low current assets, likely a working capital deficit.
Creditors > 1 Year	163,641	High long-term liabilities, likely debt or mortgage on real estate assets.
Net Current Assets	1,170 (current assets) - (unknown exact current liabilities, but likely small)	Appears negligible or negative working capital.
Shareholders’ Funds	-13,785	Negative equity, indicating liabilities exceed assets.
Profitability	Not disclosed, but persistent negative equity suggests cumulative losses or loan financing.
Employees	0	No staff cost; possibly a holding or investment company.

Interpretation:

• Fixed assets remain fairly constant, suggesting the company holds property or real estate assets with little recent investment or disposal.
• Extremely low current assets against substantial creditors (mainly long-term) indicate the company is highly leveraged and possibly reliant on external financing.
• Negative shareholders’ funds (equity) is a symptom of financial distress – liabilities exceed assets, which can impair the company’s ability to raise further funding or withstand shocks.
• The absence of employees suggests limited operational activity, typical in real estate management or holding companies.

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3. Diagnosis

Underlying Business Health:
BRODERICK AND SEBASTIAN LIMITED appears to function primarily as a real estate management or investment entity, managing or holding property assets with considerable debt financing. The financial "vital signs" display several "symptoms of distress":

• Negative equity is a key concern. It means the company owes more than it owns, similar to a patient with a chronic imbalance that threatens stability.
• High long-term liabilities relative to fixed assets indicate reliance on debt financing, potentially mortgage loans on real estate assets.
• Minimal current assets and working capital suggest a lack of liquid resources to cover short-term obligations, risking cash flow strain.
• The company’s status as a micro-entity with no employees points to a lean structure but may also mean limited revenue generation capacity beyond rental or management fees.
• Absence of audit and limited disclosures constrain a fuller assessment, but the negative equity and high liabilities strongly indicate financial vulnerability.

Overall, the company is in a fragile financial state, relying heavily on external financing with limited buffer to absorb adverse events.

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4. Recommendations

To improve financial wellness and stabilize the company’s financial health, consider the following:

1. Increase Equity Capital:
   Inject additional shareholder funds or secure equity investment to restore positive net asset value and improve balance sheet strength.

2. Debt Restructuring:
   Negotiate with creditors to restructure or extend debt maturities, potentially reducing immediate cash outflows and improving liquidity.

3. Improve Cash Flow Management:
   Enhance cash inflows by reviewing rental income collection, fees, or other revenue streams. Reduce costs where possible.

4. Asset Review:
   Evaluate fixed assets for potential sale or refinancing opportunities to generate liquidity and reduce debt burden.

5. Financial Planning and Monitoring:
   Implement regular financial reviews to monitor working capital, debt servicing capacity, and profitability. Early detection of adverse trends can prevent further deterioration.

6. Consider Professional Advice:
   Engage financial advisors or turnaround specialists experienced in real estate companies to develop and execute a recovery plan.

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