Company Number: 13800405

Analysis Date: 2025-07-29 15:32 UTC

1. Risk Rating: MEDIUM

Justification: The company exhibits a strong net asset base primarily due to significant investments, but it also shows substantial current liabilities exceeding current assets, indicating liquidity pressure. The presence of large creditor balances linked to share purchase options adds complexity to financial stability. Filing compliance is up to date and no adverse status is noted.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of approximately £2.23 million as at 30 June 2024 indicate potential short-term cash flow challenges.
• Concentration of Control and Investment Risk: The company is a holding entity with large investments (£29.56 million) in associates, which inherently carry valuation and market risks; the significant increase in investment valuation should be scrutinized.
• Related Party Creditors: £2.35 million owed under share option liabilities classified as current creditors could crystallize into cash outflows, impacting liquidity.

3. Positive Indicators:

• Substantial Shareholders’ Funds: Equity increased markedly to £27.33 million, reflecting capital contributions and retained earnings.
• Compliance and Filing Status: Accounts and confirmation statements are filed on time, indicating good regulatory adherence.
• Experienced Management: Directors have stable appointments since incorporation with no disqualifications reported.

4. Due Diligence Notes:

• Review underlying assets and valuation methodology of fixed asset investments to assess sustainability and realism of fair value increases.
• Examine terms and potential cash impact of options granted related to share purchases recognized as liabilities.
• Assess cash flow projections and working capital management plans to mitigate current liabilities exceeding current assets.
• Confirm absence of contingent liabilities or off-balance sheet risks related to related party transactions.
• Investigate the relationship and financial health of the controlling entity (Allectus Quantum Holdings Ltd) given its full ownership and control.