ADCOM ADVISORY LIMITED

Executive Summary

ADCOM ADVISORY LIMITED maintains a positive net asset position and cash reserves, with improved profitability in the latest year. However, a large increase in short-term liabilities introduces medium solvency and liquidity risk that should be carefully reviewed. No compliance issues are evident, but further due diligence on creditor composition and ongoing cash flows is recommended to confirm financial stability.

ADCOM ADVISORY LIMITED - Analysis Report

Company Number: 12786184

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: MEDIUM

Justification: ADCOM ADVISORY LIMITED shows positive net assets and working capital, with no overdue filings and a stable director structure. However, the sharp increase in current liabilities in the latest year relative to prior years, coupled with a modest net asset base, introduces some solvency and liquidity risk that warrants close monitoring.

2. Key Concerns:

• Significant increase in current liabilities from £12,612 (2022) to £248,070 (2023), which could pressure short-term liquidity and operational cash flow.
• Concentration of ownership and control in a single entity (Fernfield Holdings Limited) owning 75-100% shares and voting rights, which may reduce governance transparency.
• Reliance on debtors and prepayments (notably £68,360 in 2023, including £50,000 owed by group undertakings) as part of current assets; potential risk if collection delays occur.

3. Positive Indicators:

• Healthy cash balance (£247,462 in 2023) providing liquidity buffer to meet immediate obligations.
• Net current assets positive at £67,752 in 2023, indicating working capital adequacy despite increased liabilities.
• Timely filing of accounts and confirmation statements with no overdue compliance issues.
• Stable director appointments with no records of disqualification or governance concerns.
• Profit and loss account turned positive in 2023 (+£20,806) compared to a loss in prior year, reflecting improved operational performance.

4. Due Diligence Notes:

• Investigate composition and maturity profile of the increased current liabilities, specifically the £168,000 classified as "other creditors" and £60,620 accruals/deferred income in 2023.
• Examine cash flow statements and management accounts for 2023-2024 to assess ongoing liquidity trends and ability to service liabilities.
• Review debtor aging and credit risk, especially amounts due from group undertakings and other debtors, to confirm collectability.
• Evaluate governance and control arrangements given the dominant ownership by Fernfield Holdings Limited, including potential related party transactions.
• Confirm whether the company’s exemption from audit remains appropriate and whether external or internal reviews provide sufficient assurance on financial controls.