REDBRICK HOUSING CONSULTANCY LTD

Executive Summary

Redbrick Housing Consultancy Ltd shows an initial stable financial position with positive net assets and sufficient cash to cover short-term liabilities. However, its first-year trading status and modest equity base necessitate conditional credit approval with close monitoring of liquidity and operational performance. Continued oversight of cash flow and timely statutory compliance will be critical to support creditworthiness going forward.

REDBRICK HOUSING CONSULTANCY LTD - Analysis Report

Company Number: 14671047

Analysis Date: 2025-07-29 18:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Redbrick Housing Consultancy Ltd is a newly incorporated small private limited company with a positive net asset position and working capital surplus. However, the company’s financial history is limited to one accounting period, and its current liabilities are relatively high in proportion to current assets, indicating limited liquidity buffer. The director’s full ownership and control provide clear accountability but also concentrate risk. Approval is recommended with conditions: ongoing monitoring of cash flow and timely filing compliance, and possibly requiring personal guarantees or collateral until a more established trading record is available.

2. Financial Strength:
   The company reported net assets of £12,742 as at 29 February 2024, with tangible fixed assets of £971 and current assets of £72,135. Current liabilities total £60,179, resulting in net current assets (working capital) of £11,956. The balance sheet shows modest equity funded primarily by retained earnings rather than share capital (£1 share capital). The financial position is stable but very modest, typical for a first-year small company. The company is exempt from audit, meaning less external scrutiny. The limited trading history restricts visibility on profitability and financial resilience.

3. Cash Flow Assessment:
   Cash at bank stands at £70,426, which covers current liabilities of £60,179, indicating sufficient liquidity at the balance sheet date to meet short-term obligations. Debtors are minimal (£1,709), suggesting limited credit risk from receivables but also possibly a small customer base. The positive net current assets indicate working capital adequacy, but the relatively high current liabilities (including tax and other creditors) require active cash flow management. Close attention should be paid to cash flow forecasts and covenant compliance in future periods.

4. Monitoring Points:

• Monthly cash flow and debtor aging analysis to ensure liquidity is maintained.
• Timely payment of tax liabilities and other creditors to avoid penalties or credit issues.
• Review of profit and loss accounts when available to assess operational profitability and cash generation.
• Monitoring director’s financial conduct and any changes in ownership or management control.
• Compliance with filing deadlines for accounts and confirmation statements to avoid regulatory risk.
• Any indications of increased borrowing or contingent liabilities that may impact financial stability.