ACIME UK LIMITED

Risk Rating: HIGH The company exhibits persistent and worsening balance sheet insolvency, with net liabilities exceeding £112,000 as of December 2024. Furthermore, the company suffers from a severe liquidity deficit, with current liabilities vastly outstripping current assets, and an apparently heavy reliance on extended trade creditor terms to fund operations. Without explicit parental financial support, the company's financial stability is highly questionable.

Key Concerns: * Balance Sheet Insolvency: Shareholders' funds have been negative since 2021, deteriorating from -£97.9k in 2022 to -£112.6k in 2024. The company's net assets are similarly negative, indicating that liabilities consistently exceed assets. * Severe Liquidity Deficit: Net current liabilities stand at -£142,245. Cash reserves have fallen from £27,305 in 2023 to just £17,038 in 2024, against current liabilities of £501,917. The company has virtually no liquidity headroom to meet its immediate obligations. * Trade Creditor Dependence: Trade creditors ballooned from £288,239 in 2023 to £450,268 in 2024. Given the low cash position, the company appears to be heavily relying on stretching supplier payment terms to finance its operations, which poses a significant solvency risk if creditors demand payment.

Positive Indicators: * Implied Group Support: The presence of "ACIME FRAME" as a corporate director and a £182,937 debtor balance for "Sales Commissions & Mktg Fees (France)" strongly suggests the company operates as a UK subsidiary of a larger French group. This structural context likely explains how the company continues to trade despite balance sheet insolvency (implicit group support). * Active Trading and Asset Growth: Total assets increased significantly from £237,916 in 2023 to £389,277 in 2024, driven by a near-doubling of trade debtors (from £139,907 to £127,725) and the addition of £27,495 in tangible assets. This indicates the business is actively investing and generating revenue, rather than winding down. * Regulatory Compliance: The company is up to date with its filing requirements. Accounts for December 2024 were approved in June 2025, and no filings are overdue.

Due Diligence Notes: * Going Concern Basis: The accounts are prepared on a going concern basis despite net liabilities. It is critical to obtain explicit confirmation (such as a formal letter of support or comfort letter) from the parent company, ACIME FRAME, guaranteeing financial support for at least 12 months from the reporting date. * Intercompany Balances: The "Sales Commissions & Mktg Fees (France)" debtor of £182,937 and "Other creditors" of £36,798 need investigation to determine if these are intercompany balances. If the large debtor is owed by the parent, its recoverability and terms should be verified, as it represents over 50% of the company's total assets. * Trade Creditor Profile: It must be established whether the £450k in trade creditors is owed to the parent company (for goods supplied) or to unrelated third parties. Third-party creditors of this magnitude, combined with the low cash position, present a high risk of insolvency triggers (e.g., winding-up petitions). * Director Capacity: The officer list includes a "UK SALES MANAGER" appointed as a director (Matthew John Duncan). Clarification should be sought on whether this is an executive board appointment or an administrative listing, as it may indicate a lean operational structure where key management have dual roles.