CALIBRE GROUP SOLUTIONS LIMITED

Risk Rating: HIGH Justification: The company exhibits a severe liquidity deficit, with net current liabilities of £595,480 and virtually no cash (£273). While technically solvent on a balance sheet basis due to subsidiary investments, its ability to meet immediate obligations as they fall due is entirely dependent on the continued forbearance of connected and related party creditors, rather than independent operating cash flows.

Key Concerns: * Extreme Liquidity Deficit: Current assets total just £15,725 against current liabilities of £611,205. The current ratio is significantly below 1 (approximately 0.02), indicating a complete inability to cover short-term debts through liquid assets without external support or the realization of subsidiary investments. * Related Party Dependency: The company's financial stability rests heavily on connected parties. Current liabilities include £461,343 owed to National Dealer Academy Limited (a company directed by the sole director) and £130,439 owed to the director's current account. Additionally, the only long-term liability is a £180,000 loan from the director. If these connected parties demanded repayment, the company would be immediately insolvent. * Concentration Risk in Subsidiary Valuation: Net assets of £269,620 are entirely reliant on the carrying value of fixed asset investments in subsidiaries (£1,045,100). If these subsidiaries underperform or fail, the parent company would face significant impairment losses, wiping out its equity.

Positive Indicators: * Positive Net Assets: Despite the liquidity squeeze, the company reports positive net assets/shareholders' funds of £269,620. The investment in subsidiaries provides a buffer that theoretically covers the total liabilities. * Regulatory Compliance: The company is up to date with its filing requirements. Accounts for the year ended 31 July 2025 were filed on time, and the confirmation statement is current, indicating no immediate administrative distress or regulatory infractions. * Owner Financing and Support: The director's current account and connected company loans demonstrate a willingness from the ownership to finance operations and provide ongoing financial support, keeping the entity afloat despite the lack of independent liquidity.

Due Diligence Notes: * Subsidiary Performance: It is critical to obtain and review the financial statements of Finance Cover & Training Limited and Fabulous Miniatures Limited. An assessment must be made as to whether the £1,045,100 investment valuation is supportable and whether these subsidiaries generate sufficient cash flow to justify the parent company's reliance on them. * Terms of Connected Debt: Investigate the terms and repayment expectations of the £461,343 owed to National Dealer Academy Limited. As this is a massive portion of current liabilities, understanding whether this is callable on demand or effectively long-term capital is essential for assessing true solvency risk. * Operational Cash Flow Mechanics: Clarify how a company with zero employees and £273 in cash sustains itself operationally. Determine if operating expenses are settled directly by the connected company or director, and assess the sustainability of this arrangement. * Dividend Sustainability: The company paid a £20,000 dividend in 2025 (down from £40,000 in 2024) despite having negative working capital. Investigate the justification for these distributions and whether they compromise the company's already fragile financial position.