BULKBRU LIMITED

Executive Summary

BULKBRU LIMITED is financially stable with strong liquidity and positive equity, indicating good short-term health and operational soundness. However, a recent decline in net assets signals the need to analyze profitability and cost management to prevent emerging financial distress. The company benefits from consistent governance and compliance but should consider strategic asset investments and enhanced financial oversight to sustain growth.

BULKBRU LIMITED - Analysis Report

Company Number: 12545464

Analysis Date: 2025-07-20 12:52 UTC

Comprehensive Financial Health Assessment for BULKBRU LIMITED

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1. Financial Health Score: B

Explanation:
BULKBRU LIMITED exhibits a generally sound financial position with strong liquidity and a positive net asset base. The company maintains a healthy working capital position with current assets significantly exceeding current liabilities. However, a slight decline in net assets year over year and relatively small fixed assets compared to current assets suggest cautious monitoring is advisable. The absence of audit requirements and the micro-entity reporting regime imply simpler financial operations but also less detailed disclosure. Overall, the company shows signs of stable financial health but with room for improvement in asset utilization and growth.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Fixed Assets	6,177	Low asset base, typical for micro entities; limited investment in long-term assets.
Current Assets	216,364	Strong liquidity, largely cash or equivalents expected.
Current Liabilities	3,566	Very low short-term obligations indicating minimal pressure on cash flow.
Net Current Assets	212,798	“Healthy cash flow” indicator; more than sufficient to cover short-term liabilities.
Total Assets less CL	218,975	Overall net assets after covering current debts.
Net Assets / Shareholders’ Funds	218,975	Positive equity position, showing retained profits or capital infusion.
Share Capital	2	Nominal capital; equity primarily from retained earnings or reserves.
Employee count	3	Small workforce consistent with micro company categorization.

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3. Diagnosis

• Liquidity & Working Capital: The company’s “vital signs” reveal a robust liquidity position. The net current assets are significantly positive, suggesting BULKBRU LIMITED has a “healthy cash flow” and is not under immediate threat of liquidity distress. This indicates the company can comfortably meet its short-term obligations, a key symptom of financial well-being.

• Asset Utilization: Fixed assets are minimal, suggesting the business model is either service-oriented or relies on inventory and receivables rather than heavy capital investment. This is common in companies classified under “Other human health activities” which might focus on PPE and janitorial supplies distribution.

• Profitability & Reserves: Although full profit and loss accounts are not filed (common for micro entities), net assets have decreased from £234,037 in 2023 to £218,975 in 2024. This decline may indicate either a reduction in retained profits or distributions exceeding earnings, a “symptom of distress” that warrants investigation.

• Governance & Control: The company has experienced a director resignation recently, but retains stable control with two principal shareholders/directors who hold significant ownership and voting rights. This consistency in leadership supports strategic stability.

• Compliance: No overdue filings, and accounts are filed timely, indicating good compliance health.

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4. Recommendations

• Investigate Profit Decline: The drop in net assets suggests either reduced profitability or increased distributions/dividends. Management should review profit margins and cost structure to address potential “symptoms of financial stress.”

• Asset Strategy: Consider whether incremental investment in fixed assets or technology could enhance operational efficiency or competitive advantage. Currently, the low fixed asset base may limit scalability.

• Cash Management: Maintain strong cash reserves as a buffer but explore opportunities to deploy excess cash productively to generate returns rather than holding idle funds.

• Succession Planning: With one director recently resigned, ensure robust governance frameworks and contingency plans are in place to mitigate risks related to leadership changes.

• Financial Reporting: While micro-entity reporting is sufficient for now, if the company grows, more detailed financial statements and audits will provide better insights and credibility with stakeholders.

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