Company Number: 13554755

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: MEDIUM
   The company shows signs of operational activity with positive net current assets in the latest year but has a very low net asset base and significant hire purchase liabilities. The financial position is fragile but not immediately critical.

2. Key Concerns:

• Low Net Assets: Net assets have declined to £686 in 2024 from £2,219 the prior year, indicating diminished equity and potential erosion of financial cushion.
• Significant Hire Purchase Debt: The company has substantial hire purchase liabilities (£26,551 total) with a large portion falling due after one year, increasing fixed financial obligations and leverage risk.
• Directors’ Advances: The balance of director loans has increased materially to £18,491 at year end, which may imply reliance on director funding to sustain operations and could complicate financial stability if not managed properly.

3. Positive Indicators:

• Positive Net Current Assets: Despite being modest (£2,647), the company’s working capital turned positive in 2024, supporting short-term liquidity.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with regulatory requirements and good governance practices.
• Consistent Management: The same two directors have been in place since incorporation, providing operational continuity and control transparency.

4. Due Diligence Notes:

• Investigate the nature and terms of hire purchase contracts to assess repayment capacity and impact on cash flow.
• Review the composition and collectability of “Other Debtors” (£18,491) which have increased substantially, to evaluate quality of receivables.
• Examine the director loans’ terms, repayment plan, and impact on company solvency.
• Seek management commentary on the drop in net assets and any related operational challenges or strategic plans.
• Confirm ongoing business activity and revenue streams given the dual SIC codes (management consultancy and freight rail transport) which may indicate diversified operations.