M28 BRICKWORK & REMEDIALS LTD

Executive Summary

M28 BRICKWORK & REMEDIALS LTD is a recently established micro-entity with positive net assets but significant short-term liabilities that exceed current assets, indicating potential liquidity challenges. High director turnover and limited operational data introduce moderate risk regarding governance and sustainability. Regulatory compliance is satisfactory, but further investigation into liabilities and business performance is recommended before investment.

M28 BRICKWORK & REMEDIALS LTD - Analysis Report

Company Number: 15303919

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated and currently meets micro-entity criteria with very limited financial history. While net assets are positive, the significant current liabilities relative to current assets and minimal working capital raise moderate solvency and liquidity concerns. Lack of operational history and director turnover also contribute to risk.

2. Key Concerns:

• Liquidity risk due to current liabilities (£23,515) greatly exceeding current assets (£613), resulting in a negative net current asset position (-£22,902). This may pressure short-term cash flows.
• High director turnover within the first year, with 3 of 4 directors resigning in June 2024 shortly after appointment, potentially indicating governance or operational instability.
• Limited operational track record and small scale (one employee, micro-entity status) make it difficult to assess business sustainability and revenue generation capabilities.

3. Positive Indicators:

• The company is compliant with filing requirements and no overdue accounts or confirmation statements are recorded, indicating good regulatory adherence.
• Positive net assets (£9,168) suggest some equity buffer above liabilities overall, supported by fixed assets (£32,070).
• Clear ownership structure with four shareholders controlling shares and voting rights, including a PSC holding controlling voting rights, provides transparency on control.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand liquidity pressure and timing of repayments.
• Review reasons for director resignations and any potential impacts on company governance or strategy.
• Obtain revenue and cash flow forecasts or management accounts to assess operational viability and ability to meet obligations.
• Verify the status and valuation of fixed assets to confirm their realizable value in case of financial distress.