Company Number: 13541652

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: MEDIUM
   The company shows improving net asset position and positive working capital in the most recent year, yet has a history of net current liabilities and modest net assets prior to 2024. The use of hire purchase financing increases leverage and potential liquidity risk.

2. Key Concerns:

• Leverage and Debt Obligations: Significant fixed assets are held under hire purchase contracts (£50,861 net book value at 2024 year-end), with related liabilities of £36,297 due after one year and provisions of £14,205. This indicates reliance on external finance and potential cash flow pressure to meet these obligations.
• Working Capital Fluctuations: Net current assets improved from a negative £12,515 in 2023 to a positive £47,048 in 2024, but prior years show tight liquidity. Debtors represent a large portion of current assets (£270,676), which may pose collection risk and impact cash availability.
• Modest Equity Base and Profitability Opaqueness: Shareholders’ funds increased to £53,368 in 2024 from £525 in 2023, reflecting improved profitability or capital injection; however, financial statements are abridged and unaudited, limiting visibility on profitability and cash flow generation.

3. Positive Indicators:

• Improved Financial Position: The company moved from a net asset position close to zero (£525) in 2023 to a more robust £53,368 in 2024, showing progress in financial stability.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance awareness.
• Experienced Management: Directors and persons with significant control have clear roles and appear stable, with no red flags such as disqualifications.

4. Due Diligence Notes:

• Review detailed income statement and cash flow data (not filed here) to assess profitability and cash generation, especially given the large debtor balances.
• Investigate the terms and impact of hire purchase agreements and provisions to understand ongoing financing costs and liquidity implications.
• Assess credit control procedures and debtor aging to evaluate the collectability risk of outstanding receivables.
• Confirm that the company’s going concern assumption is supportable given its financing structure and working capital trends.