Company Number: 14500595

Analysis Date: 2025-07-29 12:48 UTC

Financial Health Assessment for F & D Brown Brickwork and Son Limited

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1. Financial Health Score: C

Explanation:
The company exhibits some concerning symptoms such as persistent negative working capital and low equity base, but also shows signs of stabilizing equity and asset management. The score "C" reflects a fair but fragile financial condition, indicating the company is operational but with vulnerabilities that need attention to avoid deterioration.

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2. Key Vital Signs

Metric	2025 (£)	Interpretation
Fixed Assets	45,202	Moderate investment in long-term assets, stable but slightly declining from prior year.
Current Assets	11,054	Low current asset base, significant drop from previous year, indicating reduced liquid resources.
Current Liabilities	33,003	Short-term debts remain high relative to current assets, causing net current liabilities (working capital) deficit.
Net Current Assets	-20,947	Negative working capital - "symptom of distress" suggesting potential liquidity issues in meeting short-term obligations.
Total Assets Less Current Liabilities	24,255	Positive but low buffer indicating limited cushion after covering short-term debts.
Shareholders’ Funds (Equity)	12,020	Equity has increased from £1,262 to £12,020, indicating some retained earnings or capital injection, but still low.
Average Employees	1	Very small workforce, consistent with micro-entity status, limiting operational scale but controlling overheads.

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3. Diagnosis

F & D Brown Brickwork and Son Limited shows classic signs of a micro enterprise in its early stages with constrained liquidity and negative working capital. The "healthy cash flow" analogy is somewhat compromised due to the net current liabilities (negative working capital), meaning short-term liabilities exceed short-term assets, which can strain day-to-day operations.

The company’s fixed assets remain fairly stable, implying no recent significant capital expenditure or asset disposals. The increase in shareholders’ funds from £1,262 to £12,020 is a positive development—akin to a "strengthening heartbeat"—suggesting improved equity cushion possibly through retained profits or capital contributions.

However, the sizeable current liabilities relative to current assets (nearly three times) are a "warning symptom" that the company may struggle to meet immediate obligations without additional financing or improved cash management.

The small number of employees aligns with a micro-sized builder business, which limits overhead but also capacity for growth.

Overall, the financial condition is stable but with liquidity risks that could undermine operational stability if not addressed. The company is not in immediate danger but requires careful management to strengthen its financial "immune system."

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4. Recommendations

• Improve Working Capital Management:
  Aim to increase current assets (cash or receivables) or reduce current liabilities through negotiating longer payment terms with suppliers or faster collection from customers. This will relieve the liquidity "strain."

• Build Cash Reserves:
  Establish a cash buffer to handle short-term obligations smoothly, reducing risk of operational disruption.

• Review Cost Structure:
  Given the low employee count, ensure overhead costs are tightly controlled to maintain profitability.

• Consider Capital Injection:
  Additional equity from shareholders or loans might be necessary to bolster financial stability and support growth.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasts and balance sheet reviews to detect early signs of distress and respond swiftly.

• Explore Growth Opportunities Cautiously:
  Expansion should be measured to avoid overstretching resources, ensuring operational capacity matches financial strength.

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