Company Number: 14722074

Analysis Date: 2025-07-20 15:50 UTC

1. Risk Rating: LOW to MEDIUM
   Ashley 4x4 Limited is a recently incorporated private limited company with a positive net asset position and no overdue filings. While the company is still in its infancy (incorporated in 2023), its financials as of 31 March 2024 show a modest but positive working capital position and net assets, suggesting an ability to meet short-term obligations. However, limited historical financial data restricts a full assessment of operational sustainability and cash flow trends.

2. Key Concerns:

• Limited Operating History: Incorporated less than two years ago with only one set of financial statements available, limiting trend analysis and confidence in future performance.
• Tax Liabilities: The balance sheet shows a significant corporation tax creditor (£7,891) and VAT creditor (£8,239), which may indicate timing issues or cash flow constraints in meeting tax obligations.
• Director Loans: The presence of director loan accounts (£8,347) classified as current liabilities may indicate reliance on director funding, which could affect liquidity if not managed prudently.

3. Positive Indicators:

• Healthy Net Current Assets: Current assets exceed current liabilities by approximately £9,239, reflecting positive working capital.
• Cash Position: Cash at bank and in hand is £28,153, representing a strong liquidity buffer relative to short-term liabilities.
• No Overdue Filings: The company has complied with Companies House deadlines for accounts and confirmation statements, indicating good governance and regulatory compliance.
• Clear Control Structure: Ownership and control are concentrated with a single individual (Mr Ashley Counsell), which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan accounts to understand potential repayment risk or need for continued director support.
• Review tax payment history and VAT filings to clarify whether tax liabilities are current or overdue and assess potential risk of HMRC enforcement actions.
• Assess revenue and profitability trends beyond the single financial period (e.g., management accounts, cash flow forecasts) to better understand operational sustainability.
• Confirm the valuation and amortisation policy for goodwill (£6,000) to ensure it is realistic and reflects the economic life stated in accounting policies (which is incomplete in the report).
• Evaluate customer concentration and debtor collectability given the trade debtors balance and industry risk in vehicle maintenance and repair services.