Company Number: 14062817

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: HIGH
   Assure Gas Ltd exhibits significant liquidity stress and weak solvency metrics, evidenced by consistently negative net current assets over the last two years and a declining net asset base. The company is reliant on director loans to fund operations, which raises concerns about its ability to meet short-term obligations without continued external support.

2. Key Concerns:

   • Liquidity Deficit: Negative net current assets of £4,696 as of April 2024, worsening from £3,326 in the prior year, indicate the company’s current liabilities exceed its liquid assets substantially.
   • Reliance on Director Loans: The company's current liabilities include a director loan that, while unsecured and interest-free, remains a material liability (£279 at year-end) and is indicative of cash flow dependency on related party funding.
   • Small Scale and Limited Operating History: Incorporated in April 2022, with only one employee (the director), the company has a very limited track record to demonstrate operational stability or resilience, increasing investment risk.

3. Positive Indicators:

   • Profitability: The company reported profits of £24,276 in the latest year, improving from £17,624 the previous year, suggesting operational profitability despite liquidity challenges.
   • Compliance and Timeliness: All statutory filings, including accounts and confirmation statements, are up to date and not overdue, reflecting good regulatory compliance.
   • Asset Growth: Tangible fixed assets have increased from £4,720 to £5,376, indicating investment in operational capacity.

4. Due Diligence Notes:

   • Cash Flow Analysis: Investigate detailed cash flow statements (not available here) to assess the sustainability of operations and ability to convert profits into cash to reduce current liabilities.
   • Director Loan Terms and Future Funding Plans: Clarify the terms and expected repayment or conversion of director loans and any planned external financing.
   • Customer Base and Contract Stability: Evaluate the company’s contracts, customer concentration, and revenue visibility to understand operational sustainability given the very small scale.
   • Contingent Liabilities or Off-Balance Sheet Risks: Review any potential liabilities not reflected in the abridged accounts, especially given the negative working capital position.