ANDY GRAPHIX LIMITED

Risk Rating: MEDIUM The company demonstrates a significantly improved balance sheet over the past two years, transitioning from thin net assets to a much stronger equity position. However, the risk rating is elevated to MEDIUM due to a substantial concentration of assets within "Other Debtors," the opaque nature of which cannot be verified from filleted accounts, and a notable tax liability relative to current cash reserves.

Key Concerns: * Quality and Liquidity of Debtors: The most pressing concern is the composition of current assets. "Other debtors" stands at £61,914, representing over 51% of total assets and a significant majority of current assets. Without access to the full accounts, it is impossible to determine if this represents recoverable loans (such as director loans), prepayments, or intercompany balances. If these balances are not readily realizable, the company's true liquidity position is severely overstated. * Taxation and Cash Position: The company owes £26,041 in taxation and social security within the next year. While trade debtors (£37,487) theoretically cover this, the cash-on-hand is only £16,735. The company will be heavily reliant on collecting trade debts and realizing the "other debtors" on time to meet its tax obligations without facing cash flow strain. * Key Person Dependency & Control: Mr. Andrew Brian Cobb holds over 75% of the shares, over 75% of the voting rights, and the right to appoint/remove directors. While standard for small owner-managed firms, this level of control creates key-person risk and means minority interests have limited sway. Any personal financial distress or exit strategy from the PSC could directly impact the company's operations and asset stability.

Positive Indicators: * Strong Capitalization Growth: The company has demonstrated a highly positive trajectory in net assets, growing from £14,078 (2023) to £44,154 (2024) and further to £71,723 (2025). This indicates robust retained profitability over the last two years. * Deleveraging: The company has successfully reduced its short-term bank exposure. Bank loans and overdrafts due within one year fell dramatically from £21,978 (2024) to just £2,941 (2025). This de-risking of the balance sheet provides much better short-term financial flexibility. * Regulatory Compliance: The company has been operational for over 20 years, maintains an "Active" status, and has no overdue filings for accounts or confirmation statements. The directors have signed off on the going concern basis without identifying material uncertainties.

Due Diligence Notes: * Investigate "Other Debtors": It is imperative to request the full, unabbreviated accounts or management accounts to ascertain the exact nature of the £61,914 classified as "Other debtors". Determining whether this is a loan to the directors, an intercompany balance, or a prepayment will fundamentally change the assessment of the company's liquidity and true net worth. * Profit & Loss Verification: Because the company has filed filleted accounts (taking advantage of section 444(1) of the Companies Act 2006), the Profit & Loss account is not visible. An investor should request the full P&L to verify the drivers of the recent retained profit surge and assess the sustainability of the company's revenue. * Long-term Debt Terms: Creditors falling due after more than one year have increased from £6,667 to £10,784. Due diligence should clarify the terms of this borrowing, any security held against it, and whether the increase represents new capital expenditure financing or refinancing of previously short-term debt.