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.