A D REID MANAGEMENT LIMITED

Executive Summary

A D Reid Management Limited demonstrates moderate financial vulnerability due to its negative net asset position and reliance on director loans, though it maintains compliance and positive working capital. Liquidity and operational sustainability require further investigation, especially the terms and recoverability of director advances. Overall, the company presents a medium risk profile based on the available micro-entity financial data.

A D REID MANAGEMENT LIMITED - Analysis Report

Company Number: SC728780

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: MEDIUM
   The company shows a negative net asset position as at the latest financial year end (2024), indicating some solvency concerns despite positive net current assets. The presence of director loans and the micro-entity status with minimal assets suggests moderate financial fragility but no immediate distress signals such as overdue filings or liquidation.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £270 at 30 April 2024, down from a positive £11 the previous year, indicating erosion of equity.
• Director Loans: Significant unsecured, interest-free loans to directors (£129 each), which could pose a risk if repayment terms are not enforced or if the company requires cash.
• Minimal Current Assets and Cash: Current assets have decreased substantially from £506 to £258, with no disclosed cash balance in 2024, raising liquidity risk concerns despite nominal current liabilities.

3. Positive Indicators:

• No Overdue Filings: All accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Stable Employee Count: The company maintains a stable headcount of two, suggesting operational continuity.
• Working Capital Positive: Despite net liabilities, current liabilities remain very low (£1), and net current assets are positive (£257), implying the company can cover short-term obligations.

4. Due Diligence Notes:

• Director Loans Terms and Recoverability: Investigate repayment likelihood and any formal agreements to understand liquidity impact.
• Reason for Net Asset Decline: Review detailed accounts or management commentary to identify causes of equity erosion (losses, write-offs, accruals).
• Business Model and Revenue Streams: Limited information on operations beyond SIC code (real estate trading) - assess revenue sustainability and market conditions.
• Accruals and Deferred Income: High accruals (£527) relative to assets require scrutiny to understand timing and nature of obligations.
• Intercompany or Related Party Transactions: As directors hold significant control and loans, confirm absence of conflicts or financial risks.

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