Company Number: 13527063

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency risks highlighted by a substantial negative net asset position (£-1.67m) and large current liabilities (£4.75m) vastly exceeding current assets (£0.16m), resulting in negative working capital (£-4.59m). Furthermore, the company is loss-making and has high long-term creditors (£21.13m), raising concerns about its ability to meet financial obligations without external support.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has a significant deficit in equity, indicating it is technically insolvent on a balance sheet basis at the last reporting date (March 2022).
• Large Current and Long-Term Liabilities: Current liabilities exceed current assets by a wide margin, indicating liquidity concerns. Long-term creditor obligations further strain solvency.
• Operating Losses and Cash Flow Uncertainty: The company reported a loss of £1.67m in its first financial year, with no indication of profitability or positive cash generation. There is no cash flow statement provided to assess liquidity further.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active, with no overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Group Structure and Parent Support: Majority ownership (75-100%) by Breeze Strategic Services Limited, which consolidates results and may provide financial backing or operational support.
• Auditor’s Opinion: The 2022 accounts were audited with an unqualified opinion, and the auditor confirmed the appropriateness of the going concern basis, suggesting no immediate insolvency threat identified by auditors at that time.

4. Due Diligence Notes:

• Review Updated Financials: Obtain and analyse the latest financial statements beyond March 2022 to assess current financial position, especially given director changes in 2024 and 2025.
• Group Financial Health: Examine Breeze Strategic Services Limited’s consolidated accounts to understand the financial strength and support available to Breeze Acquisitions Limited.
• Debt Structure and Covenants: Investigate the nature, terms, and maturity profile of the large creditor balances, both current and long-term, to identify refinancing risks or potential defaults.
• Cash Flow Analysis: Request cash flow statements and forecasts to evaluate liquidity management and operational cash generation capability.
• Management Changes: Consider the impact of recent director resignations and appointments on governance and strategic direction.
• Operational Model: Confirm whether the company continues solely as a holding entity, and if so, understand the performance and risks inherent in the subsidiaries it holds.