Company Number: 14368887

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: DECLINE
   Brumalex Ltd shows a significant decline in turnover from £52,483 in 2023 to £21,404 in 2024, indicating deteriorating business performance. The company maintains only minimal net assets (£135) and very limited current assets (£133), which raises concerns about its ability to meet short-term obligations or service any new credit facility. The absence of substantial fixed assets or working capital cushions, combined with a micro-entity scale and a single employee, suggests limited operational capacity and financial resilience. The recent director turnover may also indicate instability in management. Based on these factors, extending credit would be high risk.

2. Financial Strength:
   The balance sheet is extremely thin with net assets declining sharply from £19,757 in 2023 to £135 in 2024. Current assets have plummeted from £19,755 to just £133, while current liabilities are nominal or nil, resulting in a marginal net current asset position. The company holds negligible equity and no evidence of fixed assets. The financial position reflects a shrinking capital base and minimal buffer to absorb financial shocks.

3. Cash Flow Assessment:
   Liquidity appears severely constrained given the very low current assets, primarily cash or equivalents, and the small scale of operations. The working capital is positive but negligible, indicating minimal operational cash flow generation. Staff costs remain steady at £14,900 despite turnover falling, which could pressure cash flow further. The reported small profit of £571 in 2024, down from £2,465, also suggests limited internal funding capacity.

4. Monitoring Points:

• Turnover trends: Watch for continued decline or recovery, as current trajectory is negative.
• Cash and working capital levels: Critical for short-term solvency and debt servicing ability.
• Staff costs relative to revenue: High fixed costs relative to declining turnover could impair sustainability.
• Management stability: Recent director changes may affect strategic direction.
• Timely filing of accounts and returns to assess future financial disclosures and compliance.