Company Number: 13259878

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: HIGH
   The company's financial position as of 31 March 2024 shows a significant deterioration compared to prior years, with shareholders' funds turning negative (£-10,108) and net current assets barely positive (£72). This indicates a high solvency risk. The drastic reduction in current assets and cash, coupled with current liabilities remaining almost constant, signals liquidity concerns.

2. Key Concerns:

• Solvency and Negative Equity: Shareholders' funds have shifted from strong positive (£12,632 in 2023) to negative, suggesting accumulated losses or write-downs that undermine the company’s financial stability.
• Severe Decline in Current Assets and Cash: Current assets decreased from £594k to under £5k, and cash dropped from nearly £12k to £1.4k, indicating a potential cash flow crisis.
• Intercompany Balances and Related Party Exposure: Large amounts owed by and to related parties, including £266k owed by a fellow subsidiary in 2023 but not present in 2024, imply possible reliance on group funding or unsettled balances that could affect operational stability.

3. Positive Indicators:

• Timely Filings and Compliance: The company is active and compliant with filing deadlines for both accounts and confirmation statements, showing sound regulatory adherence.
• Established Industry Activity: Classified in freight transport by road (SIC 49410), the company operates in a tangible sector with ongoing operations as evidenced by employment of two persons.
• Parent Company Support: Being part of a group with a parent company (As Soon As Possible Group Limited) may provide access to additional resources or financial support, although this needs verification.

4. Due Diligence Notes:

• Investigate the cause of the sharp reduction in current assets and cash between 2023 and 2024, particularly whether this reflects operational losses, asset disposals, or reclassification.
• Review the nature and collectability of trade debtors and intercompany balances, including any related party funding arrangements and whether amounts owed are recoverable or at risk of impairment.
• Examine the company’s cash flow statements and management accounts for the latest period to assess ongoing liquidity and working capital management.
• Validate the accuracy and completeness of financial records, given the unaudited nature of accounts and significant changes in financial position.
• Assess the extent of parent company support, guarantees, or other financial assistance, especially given the negative equity position.
• Confirm no director disqualifications or governance issues, and review director resignations for any underlying concerns.