BROTHERS CODE PRODUCTIONS LTD

Executive Summary

Brothers Code Productions Ltd exhibits significant financial weakness, with a shift from marginally positive net assets to negative equity and no current assets to cover liabilities. The company's liquidity position is critical, undermining its ability to service debt or sustain operations. Credit approval is not recommended without substantial improvement in financial health and cash flow.

BROTHERS CODE PRODUCTIONS LTD - Analysis Report

Company Number: 14720624

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: DECLINE
   Brothers Code Productions Ltd shows a troubling financial trajectory with a sharp deterioration from a marginally positive net asset position (£103) in 2024 to a significant net liability position (£-11,566) in 2025. The company currently holds no reported current assets and has current liabilities of £11,452, indicating an inability to cover short-term obligations. Given the negative equity and negative working capital, the company’s capacity to service any new credit facilities is highly questionable. The lack of audit and limited disclosure due to micro-entity status further reduces transparency and increases risk.

2. Financial Strength:
   The balance sheet reveals a complete erosion of net assets. Total assets less current liabilities moved from a positive £217 to a negative £-11,452 within one year, signaling either losses, write-offs, or increased liabilities without corresponding asset coverage. Shareholders’ funds turned negative, reflecting accumulated losses or capital withdrawals exceeding equity. The company has no fixed or current assets reported in 2025, which is a critical weakness. The liability base, although relatively small in absolute terms, is not supported by any liquid or tangible assets.

3. Cash Flow Assessment:
   The absence of current assets (including cash or receivables) against current liabilities indicates severe liquidity stress. Negative net current assets of £-11,452 suggest the company may struggle to meet short-term creditor demands. The very small size of operations (average 2 employees) and micro-entity status limit operational scale but do not mitigate the liquidity risk evident here. Without cash or equivalents, the company is unlikely to sustain ongoing operations or repay debts without external capital injections.

4. Monitoring Points:

• Monitor subsequent financial filings for recovery or further deterioration in net assets and liquidity position.
• Watch for any director or shareholder capital infusions that might improve the balance sheet.
• Track overdue payments or creditor actions, given the negative working capital.
• Follow any changes in management strategy or business model aimed at restoring financial viability.
• Confirm whether the company remains solvent and able to continue as a going concern in future accounts.