Company Number: 14250090

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: LOW
   The Brainery Ltd demonstrates a stable financial position for a micro-entity with positive net assets, no overdue filings, and continued active status. The company’s balance sheet shows a healthy net current asset position and growing shareholders’ funds over the last two years, which supports a low solvency risk.

2. Key Concerns:

• Declining Net Assets: Net assets have decreased from £8,401 in 2022 to £6,286 in 2024, indicating some erosion of equity that warrants monitoring.
• Small Scale and Limited Operational Data: As a micro-entity with only one employee and minimal fixed assets, operational scale and diversity are limited, which could affect resilience to adverse market conditions.
• Concentrated Control: One individual (Ms Naomi Austin Jones) holds 75-100% shareholding and voting rights, creating potential governance risk through concentration of control.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains net current assets of £5,440 as of July 2024, indicating sufficient short-term liquidity to meet obligations.
• Up-to-date Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices, reflecting good regulatory compliance.
• Consistent Financial Reporting: The company has consistently filed accounts prepared under the micro-entity regime, with full transparency on its small operational footprint and financial position.

4. Due Diligence Notes:

• Investigate the drivers behind the declining net asset trend and whether this is due to operational losses, dividend payments, or other transactions.
• Review cash flow statements (not provided) to assess cash generation and liquidity beyond balance sheet snapshots.
• Assess the impact of single-person control on strategic decisions and risk management, including any related party transactions.
• Confirm the nature of fixed assets and their valuation, given the small asset base.
• Verify the business model sustainability given the micro scale, single employee, and primary education SIC code.