Company Number: 14721473

Analysis Date: 2025-07-29 12:41 UTC

Financial Health Assessment for COOPER BRICKS LIMITED

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1. Financial Health Score: D

Explanation:
This rating reflects significant financial distress despite the company being newly incorporated. The net liabilities indicate negative equity, which is a serious symptom suggesting the company owes more than it owns. The micro-entity status limits detailed financial data, but the available figures point to vulnerability in solvency and liquidity.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£86,665	Represents investment in long-term assets; a positive sign indicating some asset base.
Current Assets	£2,495	Very low liquid assets to cover short-term obligations; a symptom of poor liquidity.
Current Liabilities	£99,500	High short-term debts compared to current assets, indicating possible cash flow stress.
Net Current Assets	£1,833	Positive net working capital, but very small, suggesting tight cash flow management.
Creditors After One Year	£99,500	Large long-term liabilities contributing to overall negative equity.
Net Assets / Shareholders Funds	-£11,002	Negative net worth indicating insolvency risk; company owes more than it owns.
Average Number of Employees	1	Very small operation consistent with micro-entity status; limited scale.

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3. Diagnosis: Financial Condition Overview

Symptoms of Distress:
COOPER BRICKS LIMITED shows signs of financial strain despite its short operating history (incorporated March 2023). The most concerning symptom is the negative net assets (-£11,002), meaning liabilities exceed assets. This is akin to a patient showing critical vital signs—indicating insolvency risk.

The company holds fixed assets (£86,665), which may be property or equipment related to its real estate letting activity (SIC 68209). However, the current assets (£2,495) are insufficient to comfortably cover short-term liabilities (£99,500). The net current assets figure seems inconsistent with creditors within one year (£99,500) and current assets (£2,495), suggesting some creditor amounts may be incorrectly classified or that there is a timing mismatch.

The long-term creditor liability of £99,500 adds a heavy debt burden. This level of leverage is risky for a micro-sized company with only one employee (the director). The absence of audit (allowed under micro-entity provisions) means financial health should be monitored carefully for accuracy.

The company is active, with no overdue filings, reflecting good compliance behaviour, which is a positive sign in organisational health.

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4. Recommendations: Steps to Improve Financial Wellness

• Address Negative Net Worth:
  The company should consider raising additional equity or converting some debt into equity to restore positive net assets. This is like administering a tonic to strengthen the patient’s core strength.

• Improve Liquidity:
  Boost current assets (cash or receivables) to better cover short-term liabilities. Tight cash management and possibly negotiating better payment terms with creditors can help stabilize day-to-day operations.

• Debt Restructuring:
  Review the £99,500 creditor balance falling due after one year. Explore restructuring options to reduce interest costs or extend repayment schedules, easing financial pressure.

• Operational Review:
  With only one employee and a micro-entity, the business must focus on efficient operations and cost control. Avoid overextending resources until financial health improves.

• Regular Financial Monitoring:
  Maintain rigorous financial record-keeping and timely filings to monitor for any worsening symptoms. Early intervention can prevent deterioration into insolvency.

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Medical Analogy Summary

COOPER BRICKS LIMITED is currently displaying symptoms of financial distress with a negative net asset 'diagnosis'. The company is in a fragile state akin to a patient with low blood pressure and weak pulse — it needs immediate intervention to restore strength and stability. Without corrective action, the prognosis could worsen, risking insolvency.

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