NOMADIC DEVELOPMENTS (BRAMLEY) LTD

Executive Summary

Nomadic Developments (Bramley) Ltd demonstrates stable net current assets and a clean balance sheet with no long-term debt, supporting its creditworthiness. However, liquidity is constrained by low cash balances and high debtor concentrations, requiring careful cash flow monitoring. Conditional approval is recommended with ongoing review of working capital management and collection efficiency.

NOMADIC DEVELOPMENTS (BRAMLEY) LTD - Analysis Report

Company Number: 13600905

Analysis Date: 2025-07-29 19:47 UTC

1. Credit Opinion: APPROVE with close monitoring. Nomadic Developments (Bramley) Ltd is a relatively young private limited company operating in the building development sector. The company displays stable net current assets and shareholders’ funds over the last three years, reflecting consistent balance sheet strength. However, the company’s cash holdings are very low (£3,095 in 2024), and a large proportion of current assets are tied up in debtors (£424k) and stocks (£311k), which could pressure liquidity. The director holds full control, which indicates clear management responsibility but also concentration risk. Given these factors, the company can reasonably meet short-term obligations but requires monitoring of cash flow and debtor collections to mitigate liquidity risk.

2. Financial Strength: The company’s financial position shows net current assets around £292k consistently for the past three years, indicating a stable working capital base. Shareholders’ funds mirror this figure, signifying no long-term liabilities and a clean balance sheet. The increase in stocks from £184k to £311k in 2024 suggests expanding inventory, which should be evaluated in the context of project pipeline and market demand. The company is exempt from audit, which is typical for small entities but results in less independent financial scrutiny. The absence of long-term debt is positive for financial resilience.

3. Cash Flow Assessment: Cash at bank is minimal and has declined significantly from £27k to £3k year-on-year, which raises concerns about immediate liquidity. Current liabilities rose from £344k to £446k, mainly due to increased other creditors (£434k), which may indicate supplier credit or accrued expenses. Debtors remain high and static at £424k, suggesting slow collection or extended credit terms granted to customers. This concentration in receivables and low cash reserves highlight potential cash flow constraints. The company’s ability to convert stocks and debtors into cash promptly will be critical to service short-term liabilities.

4. Monitoring Points:

• Track debtor ageing and collection effectiveness to ensure timely cash inflows.
• Monitor stock levels relative to sales and project progress to avoid overstocking or obsolescence.
• Review cash flow forecasts regularly to anticipate any liquidity shortfalls.
• Watch creditor terms and ensure supplier relationships remain stable.
• Evaluate any future borrowing or capital injections that may be required to support growth.
• Keep an eye on director conduct or changes given sole control concentration.