BRUNEL HOLDINGS SW LTD

Executive Summary

BRUNEL HOLDINGS SW LTD demonstrates a high-risk profile due to a significant liquidity gap and marginal net equity despite substantial fixed assets. While the company is compliant with filing obligations and has a stable ownership structure, the heavy reliance on debt and limited liquid resources raise concerns about its ability to meet short-term obligations and sustain operations. Careful scrutiny of loan terms, cash flow, and asset valuations is recommended before considering investment.

BRUNEL HOLDINGS SW LTD - Analysis Report

Company Number: 13130636

Analysis Date: 2025-07-20 13:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, primarily due to its current liabilities vastly exceeding current assets, and a minimal net asset base despite substantial fixed assets.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities (£330,197) far exceed current assets (£5,962) as of 30 September 2024, indicating an inability to meet short-term obligations from liquid resources.
• Solvency Pressure: Net assets are only £483, a marginal increase from £244 the prior year, despite fixed assets remaining substantial (£540,951). The company's liabilities due after one year remain high (£216,233), suggesting heavy indebtedness.
• Operational Scale and Sustainability: The company has only one employee (down from two), and minimal turnover data is available. The business appears to be a holding company with limited operational activity, raising questions about its income generation and cash flow sustainability.

3. Positive Indicators:

• Asset Base: The company owns tangible fixed assets valued at £540,750 (land and buildings) with no depreciation charge, providing a substantial collateral base.
• Timely Filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Stable Directorship and Control: Directors have been consistent since incorporation, with clear ownership and control by Mr. Brian Venables, which may aid decision-making and stability.

4. Due Diligence Notes:

• Examine Loan Agreements: Investigate the terms, covenants, and repayment schedules of the bank loans and overdrafts totalling approximately £232,000 to assess refinancing risks.
• Cash Flow Analysis: Obtain detailed cash flow statements or forecasts to evaluate how the company manages to service its liabilities given low liquid assets.
• Asset Valuation: Confirm the valuation and marketability of the fixed assets, particularly the land and buildings, to ascertain their true realizable value under distress.
• Operational Income: Review income streams and subsidiary performance if applicable, to understand revenue generation capacity and operational sustainability.
• Related Party Transactions: Given the familial nature of directors and sole control by one individual, check for any related party transactions or potential conflicts of interest.