LOGAN BROOKS SERVICES LIMITED

Executive Summary

LOGAN BROOKS SERVICES LIMITED is a micro-entity showing signs of financial fragility with minimal net assets and working capital. While currently compliant and active, the sharp reduction in liquidity indicates vulnerability to operational shocks. Strengthening cash flow management, increasing capital reserves, and controlling costs are critical to improving the company’s financial health and resilience.

LOGAN BROOKS SERVICES LIMITED - Analysis Report

Company Number: 14072368

Analysis Date: 2025-07-20 16:40 UTC

Financial Health Assessment for LOGAN BROOKS SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial metrics indicate a fragile financial condition with minimal net assets and working capital. The sharp decline in net current assets from £152 in 2023 to just £7 in 2024 signals emerging liquidity concerns. While not in immediate distress, the financial "vital signs" reflect symptoms of thin capital buffers and limited financial resilience, warranting attention.

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2. Key Vital Signs

Metric	2023	2024	Interpretation
Current Assets	£492	£539	Slight increase; mostly cash/debtors
Current Liabilities	£340	£532	Significant increase, reducing liquidity
Net Current Assets	£152	£7	Working capital nearly depleted, warning sign
Net Assets (Shareholders’ Funds)	£152	£7	Equity almost wiped out, indicating low capital
Employee Count	1	1	Single person operation, limiting scale

Interpretation:

• The net current assets (working capital) have plummeted from £152 to just £7, a critical symptom suggesting the company’s ability to cover short-term obligations is at risk.
• Current liabilities have increased by over 50%, while current assets have only marginally improved, indicating possible cash flow pressure.
• Net assets have diminished to nearly zero, reflecting negligible equity cushion against losses or unexpected expenses.
• Being a micro-entity with one employee (likely the director herself) points to a very small operational scale, which may limit flexibility in managing finances.

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3. Diagnosis

LOGAN BROOKS SERVICES LIMITED is currently exhibiting symptoms of financial fragility. The company operates at a micro scale with very limited net assets and working capital. The financial statements reveal a significant erosion of liquidity and capital in the latest financial year, which could impede operational stability if the trend continues. However, the absence of overdue filings and the active status indicate compliance discipline and ongoing business activity.

The minimal net assets and working capital suggest the company does not have a strong financial buffer to absorb shocks or fund growth. This condition is comparable to a patient with borderline vital signs—functional but vulnerable to stressors such as unexpected expenses or delayed receivables.

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4. Recommendations

To improve the financial wellness of the company and strengthen its "financial health," the following steps are advised:

• Enhance Cash Flow Management:
  Monitor and accelerate receivables collection; negotiate better payment terms with creditors to improve working capital.

• Increase Capital Base:
  Consider injecting additional equity capital or retaining earnings to rebuild net assets and create a safety cushion.

• Cost Control:
  Review operational expenses to identify and eliminate unnecessary costs that drain limited resources.

• Diversify Revenue Streams:
  Explore additional clients or services to increase turnover and reduce reliance on single sources of income.

• Financial Planning and Forecasting:
  Implement regular cash flow forecasts to anticipate liquidity issues and plan accordingly.

• Maintain Compliance:
  Continue timely filings and compliance to avoid penalties and maintain good standing.

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