Company Number: 13216336

Analysis Date: 2025-07-29 14:24 UTC

1. Risk Rating: MEDIUM
   The company shows a substantial asset base but reports recurring operating losses and very tight working capital positions, indicating moderate solvency and liquidity risk. The going concern assumption is supported by the auditor, but losses and negligible net current assets warrant caution.

2. Key Concerns:

• Operating Losses: The group recorded a significant loss of approximately £2.03 million in 2023, increasing from £1.08 million in the prior year, signaling potential sustainability challenges.
• Negative Net Current Assets: Current liabilities slightly exceed current assets by around £99-100 across multiple years, indicating a potential liquidity crunch in the short term.
• Concentration of Control and Management Changes: A single individual controls 25-50% of shares and voting rights, and there have been recent resignations of a director and company secretary, which could impact governance and operational stability.

3. Positive Indicators:

• Strong Fixed Asset Base: The company holds fixed assets valued over £4 million consistently, suggesting substantial investment in long-term resources.
• Timely and Compliant Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Auditor’s Opinion: The auditors have issued an unqualified opinion with no material uncertainties about going concern, supporting the view that the company can continue operations for the foreseeable future.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the large debtor balances (£4.27 million as of 2023 year-end), which closely match current liabilities and impact liquidity.
• Review management plans to address sustained operating losses and assess cash flow forecasts to confirm operational viability.
• Examine the impact of recent director and secretary resignations on company management and control, including succession planning and governance structure.
• Clarify the composition of the fixed assets and intangible assets to understand their liquidity and impairment risk.