OFH BRICKS LTD

Executive Summary

OFH Bricks Ltd exhibits significant financial distress, with substantial short-term liabilities outweighing liquid assets and negative equity. The company’s liquidity position is poor, raising concerns about its ability to meet debt obligations. Given these factors, credit facilities should be declined unless substantial mitigation is presented.

OFH BRICKS LTD - Analysis Report

Company Number: 12920894

Analysis Date: 2025-07-20 17:46 UTC

1. Credit Opinion: DECLINE
   OFH Bricks Ltd shows significant financial distress with net current liabilities of £1.38M as of March 2024 and negative shareholders’ funds of £111.5k. The company’s liabilities due within one year (£1.398M) vastly exceed current assets (£14.7k), indicating poor liquidity and an inability to meet short-term obligations. Despite an increase in investment property value to £1.27M, this asset is not liquid and cannot cover imminent debts. The company has been loss-making or has accumulated losses since inception, reflected in negative retained earnings. Without evidence of strong cash inflows or external support, the repayment capacity is severely impaired, warranting a decline of credit facilities.

2. Financial Strength: Weak
   The balance sheet reveals a deteriorating financial position. The fixed assets (mainly investment property) have increased in value, but this has not translated into improved net asset position due to rising current liabilities. The company’s total assets less current liabilities is negative (£111k), signaling insolvency on a going-concern basis. The absence of tangible net worth and large short-term creditors indicate limited financial buffer. No employees are reported, suggesting minimal operational activity and dependence on asset holdings.

3. Cash Flow Assessment: Poor Liquidity
   Current assets, primarily cash (£14.5k), are negligible compared to current liabilities (£1.398M). Net current assets are deeply negative (£-1.38M), highlighting a severe working capital deficit. The company’s capacity to generate or access cash to service debt or operational expenses appears critically constrained. This liquidity squeeze raises high risk of default or forced asset sales at distressed values. The lack of detailed profit and loss data precludes assessment of operating cash flow but the balance sheet alone indicates cash flow challenges.

4. Monitoring Points:

• Monitor changes in current liabilities and any restructuring of short-term debt.
• Watch for improvement in cash reserves or external capital injections.
• Track valuation and liquidity of investment property assets.
• Review any changes in directors’ actions or company status filings for signs of distress or insolvency proceedings.
• Follow up on future accounts filings for signs of operational turnaround or continued losses.