ADRIAN POLLOCK CARS LTD

Executive Summary

Adrian Pollock Cars Ltd demonstrates a high risk profile due to persistent negative net assets and working capital deficits over multiple years, coupled with reliance on director funding. While filings are up to date and there is some financial improvement in 2024, the company’s solvency and liquidity remain strained. Further detailed review of cash flow viability and director loan dependence is recommended to assess operational sustainability.

ADRIAN POLLOCK CARS LTD - Analysis Report

Company Number: NI670343

Analysis Date: 2025-07-29 21:23 UTC

1. Risk Rating: HIGH
   The company exhibits sustained net liabilities and negative working capital over multiple years, indicating solvency and liquidity concerns. The shareholder deficit has improved somewhat but remains significant. The large outstanding balance owed to the director also raises concern regarding ongoing financial support reliance.

2. Key Concerns:

• Persistent negative net current assets and net liabilities from 2020 through 2024, indicating ongoing liquidity strain and inability to cover short-term obligations from current assets.
• Shareholders' funds remain negative (£-5,066 as of June 2024), suggesting accumulated losses and potential insolvency risk if losses continue.
• Significant director’s loan balance (£52,774 owed to director as of June 2024), which may indicate dependency on director funding rather than sustainable operational cash flow.

3. Positive Indicators:

• The company is current on all statutory filing deadlines (accounts and confirmation statements not overdue).
• Reduction in net liabilities and shareholders' deficit in 2024 compared to prior years, indicating some improvement in financial position.
• Small company exemption status and micro-scale operation (single employee, low share capital) may imply a manageable operational scope.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan and assess dependency risk on director funding versus operational cash generation.
• Review the company's cash flow projections and turnover trends to determine if recent improvements are sustainable.
• Confirm if any contingent liabilities, creditor pressures, or regulatory compliance issues exist given the prolonged negative equity position.
• Assess the company’s business model and market conditions in used car sales to evaluate potential for turnaround or risk of continued losses.