Company Number: 13542267

Analysis Date: 2025-07-29 19:10 UTC

1. Risk Rating: MEDIUM

Justification: Chistar Ltd shows a moderate solvency risk due to persistent net current liabilities over the last two reported years, but it maintains positive net assets and shareholder funds. The company is active, compliant with filing deadlines, and has a clear ownership and governance structure. However, limited operational data and the designation as a "Dormant Company" SIC code despite reported transactions introduce some uncertainty in financial stability and operational sustainability.

2. Key Concerns:

• Negative net current assets: The company’s net current liabilities remain significant (£52,345 in 2024 and £104,900 in 2023), suggesting potential liquidity pressure in meeting short-term obligations.
• Reliance on group undertakings: Debtors consist mainly of amounts owed by group undertakings (£36,863 in 2024), which may indicate intra-group financing rather than external revenue generation.
• Dormant SIC code classification: The primary SIC code is "99999 Dormant Company," which conflicts with financial activity shown, potentially indicating classification issues or a lack of operational clarity.

3. Positive Indicators:

• Positive net assets and shareholder funds have increased substantially from £45,100 in 2023 to £98,600 in 2024, reflecting improved equity position.
• Timely filing of accounts and confirmation statements with no overdue status, indicating compliance with regulatory requirements.
• Ownership and control are clearly defined with one individual holding significant control, and directors are actively managing the company, suggesting stable governance.

4. Due Diligence Notes:

• Investigate the nature of the relationship and financial transactions with group undertakings, particularly the collectability of debtors and the risk of intercompany balances.
• Clarify the operational status given the dormant SIC classification despite financial activity; review business activities and revenue streams.
• Assess cash flow statements and available liquidity beyond balance sheet snapshots to better understand short-term solvency and working capital management.
• Review any contingent liabilities or off-balance-sheet commitments not disclosed in the abbreviated accounts.