Company Number: 13436377

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Millbrooke Sales Ltd is a micro-sized private limited company operating in the real estate agency sector. The company has maintained positive net current assets and shareholders’ funds, indicating a modest but stable financial position. However, the declining net current assets and total equity from £21,683 in 2023 to £12,814 in 2024 raise concerns about a weakening financial buffer. The company’s ability to service debt appears adequate at present, but the downward trend suggests careful monitoring is warranted. Given its small scale, limited fixed assets, and minimal staff, the company’s resilience to economic shocks is limited. Approval is recommended with conditions including regular financial reviews and monitoring of liquidity metrics.

2. Financial Strength:
   The balance sheet shows a total net asset base of £12,814 as of 30 June 2024, down from £21,683 the previous year. Fixed assets are minimal (£497), reflecting low capital intensity typical of real estate agencies focused on service provision rather than property ownership. Current assets of £29,223 comfortably exceed current liabilities of £16,906, yielding positive working capital of £12,317, but this is a significant reduction from the previous year’s £21,020. The share capital is nominal at £1, indicating limited shareholder investment. Overall, the company remains solvent, but the decline in equity and working capital suggests some erosion of financial strength.

3. Cash Flow Assessment:
   Current assets primarily comprise cash and receivables, which support short-term obligations effectively. The reduction in current assets and increase in current liabilities may pressure liquidity if the trend continues. The company’s micro status and single employee suggest low operating expenses, which mitigates cash flow risk. However, no detailed cash flow statement is provided, so assumptions about operating cash flow must be cautious. The positive net current assets imply adequate short-term liquidity, but the margin has narrowed, necessitating close monitoring.

4. Monitoring Points:

• Track monthly cash flow closely to detect any liquidity squeeze early.
• Watch for further declines in net current assets and shareholders’ funds.
• Monitor overdue payments from clients or creditors that might impact working capital.
• Review management plans addressing the decline in financial buffers.
• Confirm timely filing of accounts and confirmation statements to maintain regulatory compliance.