BROOK MOUNTAIN DEVELOPMENTS LIMITED

Executive Summary

Brook Mountain Developments Limited is a start-up with negative net assets and no operating profits reported, indicating weak financial strength and liquidity. The company currently relies on creditor support to continue trading, presenting a heightened credit risk. Without evidence of improved cash flow or capital injection, credit facilities are not recommended at this stage.

BROOK MOUNTAIN DEVELOPMENTS LIMITED - Analysis Report

Company Number: 14616431

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: DECLINE
   Brook Mountain Developments Limited is a newly incorporated company (Jan 2023) with limited financial history. The latest accounts (to Jan 2024) show net current liabilities of £1,803 and negative shareholders' funds of £1,803, indicating the company is currently insolvent on a balance sheet basis. No turnover or profit figures are available, and the company has minimal share capital (£100). The directors’ statement indicates reliance on creditor support to continue as a going concern, which presents a higher credit risk. Given the negative net assets and lack of operating history, the company does not currently demonstrate the financial strength or cash flow generation capacity needed to service debt or honor commercial obligations reliably.

2. Financial Strength: Weak
   The balance sheet shows total assets less current liabilities at -£1,803, and shareholders' funds are negative by the same amount. The company has no fixed or current assets reported, only creditors (£1,803). The negative working capital position and lack of retained earnings indicate poor financial footing. The minimal share capital does not provide a significant buffer against losses. As a micro private limited company engaged in building project development (SIC 41100), this position is typical of a start-up phase but insufficient to support credit facilities without substantial external funding or guarantees.

3. Cash Flow Assessment: Insufficient Data but Concerning
   No profit and loss account was filed (exempt under small companies regime), so there is no direct information on turnover, profitability, or cash flow from operations. The company shows accruals and other creditors of £1,803 due within one year, with no reported current assets to cover these liabilities. This implies potential liquidity constraints. The directors’ reliance on creditor support suggests the company may currently be dependent on external funding or shareholder loans to meet obligations. Without positive cash flow or liquid assets, the risk of default is elevated.

4. Monitoring Points:

• Filing of next full accounts including profit and loss to assess operating performance and cash flow trends.
• Changes in net current assets and net liabilities to gauge improvement or deterioration in financial position.
• Evidence of capital injection or external funding to support operations and working capital.
• Payment history with suppliers and creditors to monitor any delayed or missed payments.
• Directors’ continued support and any changes in ownership/control structure impacting financial stability.