THE BROW DR (BARROW) LTD

Executive Summary

The Brow Dr (Barrow) Ltd demonstrates significant financial distress with negative net current assets and shareholders’ funds as of June 2024, primarily driven by reliance on director loans and limited liquid assets. While statutory compliance is maintained, the company’s solvency and liquidity position pose a high risk to investors. Further due diligence on cash flow dynamics and financing arrangements is essential to assess operational viability.

THE BROW DR (BARROW) LTD - Analysis Report

Company Number: 14149630

Analysis Date: 2025-07-29 17:01 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by a substantial net current liability position and negative shareholder funds at the latest year-end. The short operating history combined with worsening financial metrics raises concerns about operational sustainability.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £6,671 at 30 June 2024, deteriorating from net current assets of £202 in 2023. This indicates inability to cover short-term obligations from liquid assets.
• Negative Shareholders’ Funds: Shareholders’ funds turned negative (£-6,671) at the latest reporting date, implying accumulated losses and potential insolvency risk.
• Reliance on Director Loans: Current liabilities include £6,615 in loans from directors, suggesting external financing is needed to support operations and cash flow is insufficient to meet liabilities independently.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Single Director/PSC: Control is consolidated under one director and shareholder, which may allow for swift decision-making and management responsiveness.
• Small Scale Operation: As a micro entity with one employee, operational complexity and fixed costs are likely limited, which may ease cost management.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: Are they repayable on demand? What are the implications if the director withdraws funding?
• Understand the business model and revenue generation: Limited financial data suggests minimal trading or revenue; assess sustainability and growth prospects.
• Review cash flow statements (if available) or bank account activity to assess liquidity trends beyond year-end snapshots.
• Confirm whether additional external financing or capital injections are planned or have occurred since the last accounts date.
• Evaluate any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.