Company Number: 13610226

Analysis Date: 2025-07-29 13:34 UTC

1. Risk Rating: MEDIUM
   Justification: CFS GROUP LIMITED shows positive growth in net assets and profits over a short operating history since incorporation in 2021, indicating improving financial health. However, the company carries a relatively high level of current liabilities compared to cash holdings, low cash balances, and a modest net current asset position. The increase in trade creditors and taxation liabilities warrants caution on liquidity management. The company is exempt from audit, which limits external verification.

2. Key Concerns:

• Liquidity risk due to low cash reserves (£3,327) against current liabilities (£177,944) as at 30 Sept 2024, raising concerns about the company’s ability to meet short-term obligations promptly.
• Significant increase in creditor balances year-on-year, particularly trade creditors and taxation/social security, which may indicate payment delays or cash flow constraints.
• No audit conducted due to exemption status; financial statements are unaudited and may lack comprehensive assurance.

3. Positive Indicators:

• Consistent profitability demonstrated by increasing profit and loss reserves (£40,072 in 2024 from £11,288 in 2023), showing operational improvement.
• Positive net current assets (£19,407) and net assets (£40,172), indicating the company’s assets exceed liabilities.
• Stable ownership and control structure with a single PSC holding 75-100% shares and voting rights, facilitating streamlined decision-making.

4. Due Diligence Notes:

• Verify cash flow statements and bank reconciliations to assess liquidity management and timing of creditor payments.
• Review tax compliance and any potential liabilities related to the increased taxation and social security creditors.
• Examine the nature and terms of operating leases (£21,467 commitments) and long-term creditor balance (£5,392) to understand future cash obligations.
• Investigate related party transactions and any potential impact on financial stability or conflicts of interest, particularly loans and balances with Complete Facilities Solutions Limited.
• Confirm management plans for sustaining growth and managing working capital given the rapid increase in creditors and asset base.