Company Number: 13910342

Analysis Date: 2025-07-20 17:06 UTC

1. Credit Opinion: DECLINE
   Brooklyn Homes Brickwork Limited is a dormant entity with negative net current assets and shareholders' funds, indicating an ongoing net liability position. The company’s latest accounts show no trading activity or revenue generation, and the financials reveal persistent deficits with no improvement over the last two years. The absence of operational cash flow and the company's classification as dormant severely limit its ability to service debt or meet commercial obligations. Without trading history or positive cash generation, the risk of default is high, making credit approval unsuitable at this stage.

2. Financial Strength:
   The balance sheet shows net current liabilities of £1,591 (2024) against cash of only £3,621, with total equity negative at £1,591. The company has minimal issued share capital (£100) and accumulated losses reflected in the profit and loss reserves. There are no fixed assets or other investments to support the balance sheet. The negative equity position and lack of tangible assets signal weak financial strength and an inability to absorb shocks or fund operations independently.

3. Cash Flow Assessment:
   Cash holdings are minimal and declining slightly (£4,500 in 2023 to £3,621 in 2024). Current liabilities marginally increased to £5,212, leading to worsening net working capital. There is no evidence of operating cash inflows as the company is dormant. Reliance on intercompany funding (amounts owed to group undertakings of £4,900) suggests liquidity support is external and not self-generated. The current cash position is insufficient to cover short-term liabilities without ongoing external support.

4. Monitoring Points:

• Filing timely accounts and confirmation statements to ensure compliance.
• Monitor any change in trading status from dormant to active and track subsequent revenue and cash flow development.
• Watch for changes in intercompany balances and liquidity support from the parent company.
• Observe any capital injections or restructuring efforts that could improve equity and solvency.
• Management stability and director conduct should be reviewed periodically; currently, directors are long-standing and no disqualifications noted.