LANGDON BROOKS LIMITED

Executive Summary

Langdon Brooks Limited shows clear financial improvement with positive net assets and strong working capital growth, supporting its capacity to meet short-term liabilities. Despite its micro-entity size and limited operational scale, the company’s financial trajectory is positive, warranting conditional credit approval with attention to liquidity management and operational scaling risks.

LANGDON BROOKS LIMITED - Analysis Report

Company Number: 13452572

Analysis Date: 2025-07-29 13:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Langdon Brooks Limited demonstrates improving financial health with a positive net asset position and growing working capital. However, as a micro-entity operating with a single employee and limited fixed assets, its scale and diversification are limited. The company appears to be in the early stages of growth with no adverse filing or director issues, but the relatively small asset base and modest liquidity constrain credit risk appetite. Approval is recommended with conditions such as monitoring cash flow and ensuring timely receivables management.

2. Financial Strength:
   The company’s net assets have increased substantially from a negative £46,618 in 2021 to a positive £80,310 in 2024, reflecting retained earnings and capital injection. Fixed assets grew modestly from £14,832 to £28,187, indicating cautious investment. The balance sheet shows a healthy net current asset position (£53,660 as of 2024), signifying that current assets exceed current liabilities by a comfortable margin. Overall, the financial position has strengthened considerably, suggesting improved solvency and equity support.

3. Cash Flow Assessment:
   Current assets increased significantly to £151,590 in 2024, primarily driven likely by improved cash or receivables, while current liabilities rose moderately to £97,930. The net working capital is positive and growing, indicating liquidity to cover short-term obligations. The limited workforce and low overheads suggest manageable cash outflows. However, being a small operation, the company may have limited cash flow buffers and should be monitored for any sudden liquidity stresses.

4. Monitoring Points:

• Maintain close oversight on receivables and payables to preserve working capital levels.
• Track any changes in shareholder funding or capital injections that may impact leverage.
• Watch for consistent profitability and cash generation in subsequent filings.
• Monitor director and management continuity and any expansion plans that may affect financial stability.