Company Number: NI700159

Analysis Date: 2025-07-20 15:59 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (August 2023) with limited financial history. While showing positive net current assets and shareholders' funds, it relies heavily on receivables, particularly from a related party, which could indicate concentration risk. The absence of audit and relatively low cash holdings add moderate risk.

2. Key Concerns:

• Receivables concentration risk: £514k of current assets are receivables, with £443k owed by a related party, Deanery Demesne Ltd, posing counterparty risk and potential liquidity issues if not collected timely.
• Low cash balance: Cash on hand is only £1,434 against current liabilities of nearly £499k, suggesting potential cash flow constraints despite positive working capital.
• Limited operating history and unaudited accounts: Being less than one year old, with full exemption from audit, limits visibility on operational performance and financial controls.

3. Positive Indicators:

• Positive net current assets (£16.5k) and net assets (£23.4k): The company currently has more current assets than liabilities and positive equity, indicating solvency at balance sheet date.
• No overdue filings and compliance up to date: Accounts and confirmation statement are timely filed, showing good governance adherence.
• Experienced directors with significant control: Three directors all owning 25-50% shares suggest engaged management with aligned interests.

4. Due Diligence Notes:

• Verify the creditworthiness and payment history of Deanery Demesne Ltd to assess the risk of receivables recovery.
• Obtain cash flow forecasts and banking arrangements to evaluate liquidity management and ability to meet short-term obligations.
• Review management accounts and any subsequent trading updates to gauge operational progress and revenue diversification.
• Confirm details of related party transactions and terms to ensure arm’s length dealings and no dependency risks.
• Assess directors’ background for any adverse records or potential conflicts of interest given their significant shareholding and control.