Company Number: 12546473

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Brookmans Holdings Ltd demonstrates a solid asset base and positive net equity, indicating financial strength. However, the substantial increase in long-term creditors (£2.86M) since 2022 raises concerns about leverage and debt servicing capacity. The company’s ability to repay or refinance this liability should be closely evaluated before extending credit. The positive working capital and current asset position support operational liquidity, but monitoring debt service coverage is crucial.

2. Financial Strength:
   The company’s net assets increased from £2.99M in 2022 to £3.11M in 2023, reflecting growth in tangible fixed assets (notably land and buildings) and current assets. The fixed asset base rose significantly due to capital additions (£1.83M), indicating investment in property or equipment, which may enhance future earning capacity. Shareholders’ funds are robust at over £3.1M. However, the company’s balance sheet shows a large amount of creditors due after one year (£2.86M), which is a considerable liability against its net assets.

3. Cash Flow Assessment:
   Cash decreased from £1.52M in 2022 to £559K in 2023, though current assets remain strong, supported by debtors of £3.03M. The large debtor balance suggests funds tied up in receivables, which could impact liquidity if not collected timely. Current liabilities increased but remain manageable relative to current assets, resulting in net current assets of £3.49M. The company appears liquid in the short term but should ensure efficient debtor collection and monitor cash flow to service long-term debt obligations.

4. Monitoring Points:

• Monitor collection of trade and other debtors to improve cash flow and reduce liquidity risk.
• Track the repayment schedule and interest obligations related to the £2.86M long-term creditors to assess debt servicing capacity.
• Watch for any signs of impairment or depreciation pressures on the substantial fixed asset investments.
• Review profitability trends when available, as accounts do not include profit and loss details; profitability is key to sustainable debt service.
• Keep abreast of any changes in director appointments or control that could affect governance or financial stewardship.