ADAM CARRUTHERS LIMITED

Executive Summary

ADAM CARRUTHERS LIMITED is a small-scale, privately controlled entity operating in the human health sector with sound regulatory compliance and positive net assets. However, its very limited liquidity, reliance on director loans, and minimal operational scale present moderate risks to solvency and sustainability. Further review of cash flows and director financing arrangements is advisable to confirm financial stability.

ADAM CARRUTHERS LIMITED - Analysis Report

Company Number: 13243264

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: LOW to MEDIUM
   Justification: The company is active with timely filings and has maintained a positive net asset position, although the scale of operations and financial resources is very modest. Current liabilities are slightly covered by current assets, and there is no indication of insolvency or regulatory non-compliance. However, the minimal cash buffer and reliance on director loans suggest limited liquidity and operational scale.

2. Key Concerns:

• Limited liquidity cushion: Cash balances are very low (£1,105) and only marginally exceed current liabilities (£1,027), indicating tight working capital that could be vulnerable to unexpected expenses or delays in receivables.
• Reliance on director loans: Over half of current liabilities (£511) are loans from directors, which could imply dependence on insider funding to meet obligations. This may pose a risk if director support ceases.
• Minimal scale and growth indicators: The company has only one employee, very low fixed assets, and modest net assets (£131), which may raise concerns about its operational sustainability and ability to absorb shocks or invest in growth.

3. Positive Indicators:

• Compliance and governance: All accounts and confirmation statements are filed on time with no overdue notices, reflecting good regulatory compliance.
• Positive net assets and working capital: The company has reported positive net assets and a slight improvement in net current assets from negative to positive year-on-year (from -£11 to +£78).
• Clear ownership and control: One director and controlling shareholder with consistent control and no adverse records reported, simplifying governance and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans to understand repayment expectations and any contingent liabilities.
• Review cash flow statements (not provided) to assess operating cash generation and liquidity trends beyond the snapshot balance sheet figures.
• Understand the business model and revenue streams given the SIC code "Other human health activities" and minimal employee count to assess operational viability.
• Confirm no undisclosed contingent liabilities or off-balance sheet risks given the small scale and early stage of the company.