IRONBRICK LIMITED
Company number 09359058 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: C (Fair – Stable but with Warning Signs)
The company shows a solid net asset base and healthy cash reserves, but persistent losses and growing long-term debt signal an underlying weakness that requires attention.
Key Vital Signs
- Cash Position: £125,897 – healthy, with a 14% increase from last year.
- Working Capital (Net Current Assets): £151,284 – positive and strong, indicating no immediate liquidity stress.
- Profitability (Retained Earnings): £-35,252 – accumulated losses are deepening (loss of ~£1,178 in 2024), a symptom of chronic unprofitability.
- Leverage: Long-term creditors rose sharply from £10,864 to £32,415 – a 198% increase, suggesting the company is borrowing more to cover shortfalls.
- Asset Base: £433,039 in fixed investments (subsidiaries) remains unchanged – no impairment or write-downs, but also no apparent returns.
Diagnosis
The company is like a patient with stable vital signs (good cash flow, positive working capital) but a chronic underlying condition: persistent operating losses and increasing reliance on debt. The investments in subsidiaries have not generated visible income, and the exchange rate reserve suggests some foreign currency exposure. While the balance sheet remains solvent (net assets £551,908), the trend of eroding retained earnings points to a slow but steady decline in financial health.
Recommendations
1. Restore Profitability: Review the core management consultancy activities to identify revenue gaps or cost inefficiencies – the company is not generating sufficient profit to sustain itself.
2. Assess Subsidiary Performance: Evaluate the two subsidiaries (Ironbrick Srl and Ironpower Ltd) – if they are not contributing positively, consider divestment or restructuring to stop the drain.
3. Manage Debt: The jump in long-term creditors needs a clear repayment plan; negotiate terms or refinance if possible to avoid a cash crunch.
4. Monitor Foreign Exchange: The unrealised exchange difference reserve of £11,593 (current liabilities) should be hedged or actively managed to reduce volatility.