Company Number: 13888846

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   Bronte Estates Ltd exhibits signs of financial distress, notably negative net assets and a significant imbalance between current liabilities and assets. The company’s solvency is questionable given its net liabilities position as of the latest financial year.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £3,240 as of 29 February 2024, down from a marginally positive net asset position previously, indicating erosion of equity and potential insolvency risk.
• High Long-Term Creditors Relative to Assets: Creditors due after more than one year increased substantially to £476,459 against fixed assets of £461,108, suggesting the company is heavily leveraged and may struggle to meet long-term obligations.
• Working Capital Volatility: Despite a positive net current assets figure in 2024 (£12,611), this follows a prior year net current liabilities of £59,070, indicating unstable liquidity and potential cash flow challenges.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with statutory filings, including accounts and confirmation statements, demonstrating regulatory compliance and governance discipline.
• Increasing Fixed Assets: The company has increased fixed assets from £166,176 to £461,108 within a year, implying investment in property or other long-term assets aligned with its real estate activities.
• Experienced Board: Directors and persons of significant control appear stable and engaged with no public record of disqualification or compliance issues.

4. Due Diligence Notes:

• Review Debt Structure and Terms: Detailed analysis of creditor agreements is necessary to understand repayment obligations, interest terms, and potential refinancing risks.
• Cash Flow Analysis: Obtain management accounts or cash flow forecasts to assess operational liquidity and ability to service debts in the short to medium term.
• Asset Valuation Verification: Confirm the valuation basis for fixed assets, especially real estate holdings, to ensure balance sheet accuracy and identify potential impairments.
• Profitability and Revenue Trends: Since this is a micro-entity, profit and loss data are limited; request additional financial statements to evaluate operational sustainability and revenue generation.
• Contingent Liabilities or Off-Balance Sheet Items: Investigate any potential liabilities not captured in the filings that could impact solvency.