BROOKE CARS M65 LIMITED

Executive Summary

Brooke Cars M65 Limited shows a weak financial position with negative net current assets and minimal cash, raising concerns about its ability to meet short-term liabilities. The company’s lack of financial history and negative equity position suggest insufficient strength to support credit at this time. Close monitoring of liquidity, profitability, and funding will be essential if credit is considered in the future.

BROOKE CARS M65 LIMITED - Analysis Report

Company Number: 14518853

Analysis Date: 2025-07-20 17:10 UTC

1. Credit Opinion: DECLINE
   Brooke Cars M65 Limited is a very recently incorporated private limited company (Dec 2022) operating in the used car retail sector. The latest accounts for the period ending Dec 2023 show a weak financial position with net current liabilities of £3,150 and negative shareholders’ funds of the same amount. The company’s current assets consist almost entirely of stock (£18,000) with negligible cash (£38), while current liabilities are significant at £21,188. This indicates poor liquidity and working capital management, raising concerns about the company’s ability to meet short-term obligations and service any credit facilities. The absence of profit and loss details limits assessment of operational performance and cash generation. Given the negative net assets, minimal cash, and lack of financial track record, the company currently does not demonstrate adequate financial strength or resilience to support new credit.

2. Financial Strength:
   The balance sheet reflects a fragile financial position overshadowed by negative net current assets and shareholders’ deficit. The company's total assets less current liabilities are negative (£3,150), indicating liabilities exceed assets in the short term. This negative equity position suggests the business is undercapitalized and reliant on external funding or director support. The stock valuation at cost may not be fully realizable if the company faces distress. Overall, the financial strength is weak with limited cushion to absorb losses or economic shocks.

3. Cash Flow Assessment:
   Cash at bank is minimal (£38), indicating virtually no liquid resources. Current liabilities exceed current assets by over £3k, signifying negative working capital and potential cash flow strain. The company’s ability to convert stock into cash promptly will be critical but is uncertain. The absence of reported income or cash flow statements limits visibility, but the balance sheet snapshot signals liquidity risk. The single director and small scale operation likely imply limited financial resources and access to external liquidity.

4. Monitoring Points:

• Monitor next year’s profitability and cash flow generation to assess operational viability.
• Watch changes in stock turnover and debtor collection to improve liquidity.
• Track any increase in current liabilities or overdue payables as early warning signs.
• Evaluate director funding or external financing arrangements to support working capital.
• Review subsequent filings for evidence of improved equity position or cash reserves.