CRAIG RAE FERGUSON LIMITED

Executive Summary

Craig Rae Ferguson Limited appears financially stable with growing net assets and positive working capital, indicating low solvency and liquidity risk. The company maintains compliance with regulatory filings and shows operational continuity. Key focus areas for further review include debtor collectability and director loan balances to fully assess cash flow robustness.

CRAIG RAE FERGUSON LIMITED - Analysis Report

Company Number: SC654515

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: LOW

Justification: Craig Rae Ferguson Limited demonstrates solid net asset growth over recent years, maintains positive net current assets and shareholders' funds, and has no overdue filings. The company has low share capital but substantial retained earnings, indicating accumulated profits. There are no indications of insolvency or liquidity distress based on the latest accounts.

2. Key Concerns:

• High debtor concentration: Trade and other debtors total £84,090 against cash of only £4, which could indicate potential collection risk or cash flow timing issues.
• Director loan balance: The director's loan account stands at £24,290, unsecured and repayable on demand, which could affect liquidity if repayment is delayed.
• Increasing taxation and social security creditors (£19,283), more than doubling year-on-year, may warrant review to ensure timely payment and avoid regulatory issues.

3. Positive Indicators:

• Growing net assets and shareholders’ funds (from £51,243 in 2023 to £66,672 in 2024) reflecting business profitability and retained earnings accumulation.
• Strong net current assets of £62,471, significantly exceeding current liabilities, suggests operational liquidity.
• Compliance with filing deadlines and no overdue accounts or confirmation statements.
• Clear ownership structure with a single controlling shareholder, facilitating decisive governance.
• Going concern status affirmed by directors, with no signs of distress or formal insolvency procedures.

4. Due Diligence Notes:

• Review debtor aging and credit control policies to assess collectability and potential bad debts.
• Investigate the nature, terms, and timing of director loan advances and repayments to understand impact on cash flows.
• Examine the reasons behind the increase in tax and social security liabilities and confirm they are being managed appropriately.
• Confirm the sustainability of business operations in the artistic creation sector, including revenue streams and market risks.
• Assess any contingent liabilities or provisions not fully detailed in the summary accounts.