THE BRAINERY LTD

Executive Summary

The Brainery Ltd presents a low-risk profile based on current financials and compliance status, with solid liquidity and no overdue filings. However, the decline in net assets and concentrated ownership warrant further review to ensure operational sustainability and governance robustness. Overall, the company appears solvent and compliant but remains small and closely controlled.

THE BRAINERY LTD - Analysis Report

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.