ACORN RESOLUTIONS LIMITED

Executive Summary

Acorn Resolutions Limited presents a stable financial position with growing net assets and sufficient liquidity to cover current liabilities. However, investor caution is warranted due to the sharp rise in corporation tax liabilities, concentrated management structure, and limited public financial disclosure. Further review of tax obligations, receivables quality, and governance is recommended to fully understand operational risks.

ACORN RESOLUTIONS LIMITED - Analysis Report

Company Number: 12641679

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and current assets exceeding current liabilities, indicating solvency. However, the sharp increase in current liabilities (especially corporation tax) and concentration of control with a single director present moderate liquidity and operational risks.

2. Key Concerns:

• Significant increase in corporation tax payable from £4,749 to £27,733 within one year, which may indicate recent profitability or deferred tax obligations requiring cash outflow.
• High reliance on a single director and lack of broader governance structure may pose operational continuity and compliance risks.
• Absence of audit and limited disclosure (small company exemption) restricts transparency, potentially concealing underlying financial or operational issues.

3. Positive Indicators:

• Consistent growth in net assets from £29,882 in 2023 to £50,185 in 2024, suggesting profitability or retained earnings accumulation.
• Healthy net current assets (£49,460) and strong cash position (£38,921) relative to current liabilities, supporting ability to meet short-term obligations.
• Up-to-date filings with Companies House, no overdue accounts or confirmation statement, indicating compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate nature and timing of corporation tax liability increase to assess cash flow impact and potential tax planning issues.
• Review contracts and receivables underlying the significant increase in debtors (£4,952 to £42,574) to confirm collectability and revenue recognition policies.
• Assess director’s background and governance practices given sole director status to evaluate management stability and oversight.
• Confirm absence of contingent liabilities or off-balance sheet risks not disclosed in the accounts.