BRYANT CCS LTD

Executive Summary

BRYANT CCS LTD demonstrates a growing equity base and solid cash reserves but faces mild liquidity pressures indicated by a slight negative working capital position. Proactive cash flow management and careful control of liabilities are advised to maintain financial stability and support ongoing business health.

BRYANT CCS LTD - Analysis Report

Company Number: 15076107

Analysis Date: 2025-07-20 14:59 UTC

Financial Health Assessment Report for BRYANT CCS LTD
Financial Year Ending 31 March 2025

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1. Financial Health Score: Grade C

Explanation: The company demonstrates a modest equity base with a positive net asset position but shows early signs of liquidity strain as indicated by a slight negative net current asset position in the latest year. While still solvent, the company's "vital signs" suggest a fragile financial condition that requires careful monitoring and management to prevent distress.

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2. Key Vital Signs

Metric	2025 Value (£)	2024 Value (£)	Interpretation
Current Assets	35,815	34,996	Slight increase, primarily cash and debtors; a healthy cash reserve is essential for daily operations.
Cash	24,548	21,626	Cash position improved, which is a positive sign of liquidity.
Debtors	11,267	13,370	Debtors decreased, indicating better collections or lower sales on credit.
Current Liabilities	35,867	34,896	Slight increase; significant short-term obligations must be managed carefully.
Net Current Assets (Working Capital)	-52	100	Shift from positive to slightly negative: symptom of potential short-term liquidity stress.
Total Assets Less Current Liabilities	353	100	Small increase indicating a marginal growth in net assets after short-term liabilities.
Net Assets (Shareholders' Funds)	252	100	Increase driven by retained earnings; positive "profit pulse" improving equity.
Share Capital	100	100	Minimal equity injection; company relies on retained earnings for growth.

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3. Diagnosis: What the Numbers Reveal

• Liquidity Status ("Cash Flow Pulse"): The company holds a reasonable cash reserve (£24,548) which is good for daily operations. However, the net current assets have slipped into the negative territory (£-52), indicating that current liabilities slightly exceed current assets. This is a warning "symptom of distress" suggesting the company could face short-term cash flow challenges if obligations come due simultaneously.

• Solvency and Capital Structure: Net assets have grown from £100 to £252, reflecting retained profits (£152) during the year. This signifies that the company is not only covering its liabilities but also building shareholder equity, a "healthy heartbeat" of sustainable business growth.

• Profitability Indication: Though the Income Statement was not filed (common in small companies), the increase in retained earnings indicates profitability during the year. An accumulation of retained earnings suggests good management of expenses relative to income.

• Asset Management: Fixed assets are minimal (£405 net book value), typical for an IT consultancy, which relies more on intellectual capital rather than heavy investment in physical assets.

• Creditors and Debtor Management: Debtors have reduced while creditors slightly increased, which may indicate improved collection efficiency but also possibly delayed payments to suppliers or tax authorities. The increase in taxation and social security creditors (£34,567) is notable and requires attention to avoid penalties.

• Director Advances and Dividends: Directors advanced £1,000 each to the company during the year, repaid after year-end — a short-term liquidity support. Dividends paid (£85,405) are substantial compared to equity, which could strain cash if not carefully balanced with operating cash flow.

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4. Recommendations: Steps to Improve Financial Wellness

1. Strengthen Working Capital Management:

   • Monitor and manage payables and receivables actively to avoid negative working capital. Consider negotiating longer payment terms with suppliers or accelerating debtor collections to maintain a positive liquidity buffer.

2. Maintain Healthy Cash Reserves:

   • Given tight net current assets, keep a close watch on cash flow forecasts. Avoid large dividend payments or director loans that could deplete cash reserves prematurely.

3. Tax and Social Security Liabilities:

   • Prioritize settling tax and social security obligations to prevent legal or financial penalties, which can exacerbate financial strain.

4. Regular Financial Review:

   • Implement monthly or quarterly financial reviews to detect early symptoms of distress. Early intervention is key to preventing liquidity crunches.

5. Profit Retention vs Dividend Policy:

   • Reassess the dividend policy to ensure that retained earnings sufficiently support growth and operational needs before distributing profits.

6. Consider External Financing Options:

   • If expansion or operational investment is planned, evaluate options for low-cost financing to bolster working capital and fixed asset base without jeopardizing liquidity.

7. Maintain Transparent Financial Reporting:

   • Continue timely filing of annual accounts and confirmation statements to maintain good standing and investor confidence.

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Executive Summary

BRYANT CCS LTD shows a positive growth in net assets and cash reserves indicating underlying profitability. However, the recent shift into a negative working capital position signals early liquidity stress that must be managed carefully. With prudent cash flow management and cautious dividend policies, the company can strengthen its financial health and support sustainable growth.