AKORN SOLUTIONS LIMITED

Executive Summary

Akorn Solutions Limited currently exhibits high financial risk due to negative net assets and working capital deficits, signaling potential solvency and liquidity challenges. While regulatory compliance is strong and management changes may reflect corrective actions, investors should closely review operational performance and cash flow dynamics before considering involvement. Further detailed financial disclosures are necessary to fully assess the company’s viability.

AKORN SOLUTIONS LIMITED - Analysis Report

Company Number: 12824980

Analysis Date: 2025-07-19 12:40 UTC

1. Risk Rating: HIGH

Justification: The company shows a significant net liability position (-£2,028) and negative net current assets (-£2,605) as of the latest financial year end, indicating solvency and liquidity concerns. Despite being active and filing on time, the deterioration from positive net assets in prior years to a deficit suggests financial distress.

2. Key Concerns:

• Solvency Risk: The shareholders’ deficit and negative net assets indicate the company’s liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity Issues: Negative net current assets imply potential short-term cash flow problems, with current liabilities (£29,567) exceeding current assets (£26,962), including limited cash reserves (£12,072).
• Operational Sustainability: The drastic decline in net assets from £3,137 (2021) and £990 (2022) to a negative position in 2025 suggests operational losses or increased liabilities that threaten ongoing viability.

3. Positive Indicators:

• Timely Filing: The company’s accounts and confirmation statements are up to date and not overdue, reflecting good compliance with regulatory requirements.
• Active Website and Contact Details: Presence of an active website and contact information supports ongoing operations and transparency.
• Experienced Management: Recent appointment of two directors in October 2023 could indicate active management efforts to stabilize or grow the company.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and current liabilities increase, including detailed review of profit and loss accounts not filed (income statement not delivered).
• Assess the nature and aging of trade and other creditors to understand short-term obligations and any overdue payments.
• Review cash flow statements and forecasts to evaluate liquidity management and potential funding needs.
• Examine any contingent liabilities or provisions beyond the £135 recognized to understand total risk exposure.
• Confirm no director disqualifications or governance issues beyond standard filings; current directors appear compliant.