ON-LINE BRICKWORK LIMITED
Company number 07086711 · 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 Assessment: ON-LINE BRICKWORK LIMITED
1. Financial Health Score: D
Grade: D — Poor financial health; significant warning signs
The company remains active and its filings are up to date, but its financial vital signs are critically weak. Cash reserves have fallen to £457, net assets have fallen to £993, and current assets only just exceed current liabilities. In medical terms, the patient is conscious and breathing, but blood pressure is dangerously low and there is almost no reserve to withstand any additional stress. The company is not yet in critical failure, but it is fragile and requires prompt intervention.
2. Key Vital Signs
| Vital Sign | Latest Figure (2025) | Prior Year (2024) | Interpretation |
|---|---|---|---|
| Cash at bank | £457 | £3,595 | Critical low. Cash has fallen by roughly 87% in one year—barely enough to cover immediate obligations. |
| Current ratio (current assets ÷ current liabilities) | 1.02 : 1 | 1.23 : 1 | Dangerously tight. Current assets of £63,172 barely cover current liabilities of £62,179. A ratio below 1.5 is already tight for a construction business; below 1.1 leaves almost no margin for error. |
| Quick ratio (excluding stock) | 0.91 : 1 | 1.09 : 1 | Below 1.0. Without selling stock or collecting debtors, the company could not pay its immediate bills. |
| Net assets / equity | £993 | £10,429 | Severe erosion. Equity has fallen by about 90% in a year. Share capital is £1,000, with the profit and loss reserve effectively at a small negative balance, meaning there is virtually no retained cushion. |
| Working capital (net current assets) | £993 | £10,429 | Starved. The buffer between short-term assets and short-term debts is almost non-existent. |
| Asset composition | 100% current assets; no fixed assets | Mostly current | No long-term foundation. The balance sheet is made up entirely of short-term trade items (stock, debtors, cash); there are no property, plant or equipment assets to fall back on. |
| Group dependency | £40,560 owed by group undertakings; £58,180 owed to group undertakings | £36,198 owed by group; £39,180 owed to group | High reliance on related parties. The company is a net creditor to its group by roughly £17,620, but its largest single creditor group is also a group undertaking. Its financial rhythm is tightly linked to the parent company’s timing. |
| Filing compliance | Up to date | Up to date | Positive. Administrative health is intact; accounts and confirmation statements are not overdue. |
Symptoms analysis: The numbers reveal a business experiencing acute liquidity depletion and equity erosion. Cash is critically low, short-term debts almost match short-term assets, and the equity base has been reduced to a nominal level. Much of the debtor book is intercompany (£40,560), while the largest creditor is also intercompany (£58,180), meaning the company’s ability to pay depends heavily on when related parties settle or demand payment.
3. Diagnosis
Condition: Acute liquidity depletion with equity erosion
The company is technically solvent (net assets remain positive at £993), but the cushion is wafer-thin. The single-year decline in net assets from £10,429 to £993 indicates a rapid loss of financial reserves. With no fixed assets and most value tied up in debtors and stock, the company cannot quickly generate cash if creditors demand payment.
In particular: - Cash flow respiration is shallow: £457 cash is insufficient to absorb any delay in customer payments. - Working capital circulation is impaired: Current assets barely cover current liabilities, leaving no buffer for unexpected costs. - Group circulatory dependence is pronounced: Large balances with group undertakings in both directions mean the company’s stability is closely tied to the parent entity’s decisions.
The directors’ report and accounts state the company is entitled to audit exemption and has prepared accounts under the small companies regime. No auditor’s report was required. The accounts were signed on behalf of the board by a director on 23 September 2026.
4. Prognosis
Guarded to poor without intervention
If the parent company (On Line Holdings (UK) Limited) continues to provide support and debtors are collected promptly, the company can continue trading in the short term. However, the margin for error is minimal. A delay in debtor receipts, an unexpected tax or supplier bill, or a demand for repayment of the £58,180 owed to group undertakings could push the company into cash flow insolvency despite positive net assets on paper.
The outlook depends heavily on: - Whether the group will extend or restructure intercompany credit; - The company’s ability to convert debtors into cash quickly; - Restoration of profitability to rebuild the profit and loss reserve.
5. Recommendations
- Prepare an immediate 13-week cash flow forecast to identify exactly when cash will run out and where the pinch points are.
- Prioritise collection of debtors, especially the £40,560 owed by group undertakings and £15,806 owed by other debtors.
- Engage with On Line Holdings (UK) Limited regarding the £58,180 intercompany creditor to agree a repayment schedule that does not strain the company’s limited liquidity.
- Consider a capital injection or short-term loan from the parent to restore a cash buffer and strengthen the equity base.
- Review construction project pricing and overheads to return the profit and loss reserve to positive territory and stop further equity erosion.
- Maintain current filing discipline and consider seeking professional financial advice given the thin equity position and high reliance on related-party balances.