Company Number: 12543950

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: MEDIUM

The company demonstrates a positive net asset position with significant fixed assets and improving net assets year-over-year. However, persistent net current liabilities and reliance on non-current assets to cover short-term obligations pose liquidity and solvency concerns that moderate the risk rating.

2. Key Concerns:

• Negative Net Current Assets: The company shows consistent net current liabilities (-£64k in 2024), indicating working capital deficits that could strain day-to-day operations and cash flows.
• High Short-Term Creditors: Current liabilities remain significant (£157k in 2024), with a large portion relating to taxation and other creditors, requiring careful management to avoid payment difficulties.
• Substantial Depreciation Charges: Annual depreciation is material (£51.8k in 2024) relative to asset base, potentially impacting profitability and cash reserves if not matched by sufficient operational cash inflows.

3. Positive Indicators:

• Growing Net Assets and Equity: Shareholders’ funds increased from £567k in 2023 to £721k in 2024, reflecting accumulated retained earnings and profitability.
• Profit Generation: The company recorded a profit of £202k for the year ending July 2024 and has a history of profitability.
• Compliance and Timely Filing: Annual accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance and governance.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly “other creditors” and tax liabilities, to assess payment schedules and potential risks.
• Review cash flow statements and operational cash generation to confirm the company’s ability to meet short-term obligations despite negative net working capital.
• Assess the valuation and liquidity of fixed assets, especially freehold properties, to understand their usability or disposal potential if liquidity issues arise.
• Confirm the absence of any contingent liabilities or off-balance sheet obligations that could impact solvency.