BRYAN G HALL LIMITED
Company number 04104802 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: BRYAN G HALL LIMITED
1. Credit Opinion: CONDITIONAL
Rationale: The company demonstrates a robust balance sheet with exceptional liquidity and no long-term debt, supporting strong payment capability. However, the decline in net assets by approximately £48,000 (from £907,789 to £859,442) between 2023 and 2024 indicates a loss-making year, which requires clarification before full credit confidence can be established. The directors have elected not to file the income statement, limiting visibility into revenue trajectory and profitability drivers. Approval is conditional on obtaining satisfactory explanation for the decline in retained earnings and confirmation of current trading performance.
2. Financial Strength
Balance Sheet Summary (2024):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Fixed Assets | £33,213 | £39,408 | -£6,195 |
| Net Current Assets | £834,098 | £877,705 | -£43,607 |
| Net Assets | £859,442 | £907,789 | -£48,347 |
| Shareholders' Funds | £859,442 | £907,789 | -£48,347 |
Key Observations:
-
Asset-backed strength: Net assets of £859,442 represent a substantial equity base relative to the company's size (24 employees). The business is conservatively financed with minimal leverage.
-
Minimal long-term liabilities: Only £7,869 in deferred tax provisions. No bank debt, debentures, or long-term borrowings are visible on the balance sheet.
-
Capital structure: Share capital of just £85, with the vast majority of equity held in profit and loss reserves (£859,342). The business has historically retained profits rather than distributing them heavily.
-
Declining net assets: The reduction of £48,347 in net assets indicates a loss was incurred in 2024, reversing the pattern of stable/gradually growing equity seen historically (net assets were £888,480 in 2019, £909,285 in 2020, £907,789 in 2023).
-
Group structure: The company is a subsidiary of Bryan G Hall Holdings Limited, with £35,346 owed to group undertakings. This intercompany position is modest but should be understood in context of group-wide cash management.
3. Cash Flow Assessment
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Cash at Bank | £606,740 | £561,885 |
| Trade Debtors | £604,349 | £730,895 |
| Current Liabilities | £426,796 | £463,523 |
| Current Ratio | 2.87x | 2.89x |
| Quick Ratio (excl. stock) | 2.87x | 2.89x |
Assessment:
-
Excellent cash position: £606,740 in cash represents 1.4x coverage of total current liabilities. The company could settle all short-term obligations from cash alone without needing to collect a single debtor.
-
Working capital headroom: Net current assets of £834,098 provide a substantial buffer. The current ratio of 2.87x is well above the typical benchmark of 1.5x for service businesses.
-
Debtor management: Trade debtors decreased by £126,546 (from £730,895 to £604,349). This could reflect improved collections, lower revenue, or a shift in client mix. Debtor days analysis would require revenue data (not disclosed), but the absolute reduction is notable.
-
Creditor position: Trade creditors fell from £122,303 to £95,539, suggesting the company is paying suppliers promptly. Corporation tax of £90,822 and other taxation/social security of £117,776 are the largest current liabilities—routine obligations rather than distressed borrowing.
-
Cash generation paradox: Despite reporting a loss (evidenced by declining retained earnings), cash increased by £44,855. This likely reflects working capital release (lower debtors and creditors) offsetting the operating loss.
4. Monitoring Points
| Metric | Current Position | Watch Threshold | Rationale |
|---|---|---|---|
| Net Assets | £859,442 | Below £800,000 | Continued erosion would signal sustained losses |
| Cash Position | £606,740 | Below £400,000 | Critical liquidity floor for operational continuity |
| Trade Debtors | £604,349 | Exceeding £800,000 | Could indicate collection issues or revenue concentration |
| Current Ratio | 2.87x | Below 2.0x | Early warning of liquidity tightening |
| Intercompany Balance | £35,346 | Exceeding £100,000 | Group dependency risk if rising significantly |
| Employee Headcount | 24 | Below 20 | Staff reduction may signal contracting operations |
Additional Considerations:
-
Revenue visibility: The absence of filed profit and loss data means we cannot assess margin trends, revenue concentration, or contract pipeline. Requesting management accounts would be prudent for any significant facility.
-
Loss explanation: The 2024 loss requires management commentary—whether driven by one-off items, project cost overruns, market softening, or deliberate investment in capacity (headcount grew from 22 to 24).
-
Group structure: Bryan G Hall Holdings Limited controls >75% of shares. The financial health of the parent and any cross-guarantees should be reviewed for comprehensive risk assessment.
-
Sector exposure: Engineering consultancy (SIC 71129) serving infrastructure and transportation planning is generally resilient but can be sensitive to public sector capital expenditure cycles and planning policy changes.
-
Filing compliance: Accounts are current and not overdue. The company has maintained consistent filing since incorporation in 2000, indicating sound administrative governance.