CUSTOM PERFORMANCE IMPROVEMENTS LTD

Executive Summary

Custom Performance Improvements Ltd presents a low-risk profile based on its current asset coverage, positive net assets, and regulatory compliance. However, its reliance on director loans and limited operating history suggest the need for further investigation into revenue stability and cash flow sustainability. Overall, the company appears solvent with reasonable short-term liquidity but requires deeper operational insight for a complete risk assessment.

CUSTOM PERFORMANCE IMPROVEMENTS LTD - Analysis Report

Company Number: SC730649

Analysis Date: 2025-07-29 15:42 UTC

1. Risk Rating: LOW
   The company shows a solid net asset position relative to its size and industry, with no overdue filings or indications of regulatory non-compliance. Current liabilities are modest and comfortably covered by current assets, suggesting low short-term solvency risk at this stage.

2. Key Concerns:

• Reliance on director’s loan: A significant portion (£2,976) of debtors consists of an interest-free, unsecured director’s loan, which may indicate reliance on internal financing rather than external revenue generation.
• Limited liquidity buffer: Cash holdings are low (£319), meaning liquidity depends heavily on receivables and director funding, which could pose a risk if collections slow or loan support is withdrawn.
• Early stage with limited operating history: Incorporated in 2022, the company’s financial history is short and turnover details are not disclosed, making it difficult to assess operational sustainability fully.

3. Positive Indicators:

• Positive net current assets (£2,877) and net assets (£2,877) demonstrate a stable balance sheet with equity exceeding liabilities.
• Timely submission of accounts and confirmation statements indicates good regulatory compliance and governance practices.
• Shareholder structure shows clear control with identified persons with significant control, reducing governance ambiguity.
• Low operating overheads implied by small employee count (1) and modest creditors.

4. Due Diligence Notes:

• Verify turnover and profitability trends, as turnover figures are not included. Understanding revenue generation is critical to assessing operational sustainability.
• Review director’s loan agreements and repayment prospects, given the material amount outstanding and its impact on the company’s liquidity.
• Investigate the nature of the £1,004 corporation tax recoverable asset and confirm its realizability.
• Confirm the customer base and collectability of debtors (£4,080) to assess cash flow reliability.
• Assess the business plan and growth prospects given the company’s recent incorporation and sector risks in vehicle maintenance and repair.