Company Number: 13246044

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   Driven Personnel Ltd exhibits significant solvency risk as evidenced by its negative net current assets (£-359,161) and negative shareholders’ funds (£-359,162) at the latest year end (31 March 2024). This deterioration from prior years’ positive but modest equity positions signals an inability to meet short-term obligations comfortably.

2. Key Concerns:

• Negative Working Capital and Equity: The company’s current liabilities (£1,117,035) substantially exceed current assets (£757,874), and accumulated losses have eroded net assets into negative territory, indicating potential insolvency risk.
• High Bank Loans and Overdrafts: Secured debt includes significant bank overdrafts (£445,539), which have increased markedly from the prior year (£127,960), suggesting reliance on short-term borrowing that may pressure liquidity.
• Rapid Growth in Debtors and Creditors: Trade debtors have more than doubled to £507,088, while trade creditors decreased slightly, and taxation/social security liabilities have surged to £421,597 from £32,651. This mismatch could reflect collection or timing issues, straining cash flows.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current with statutory filings, including accounts and confirmation statements, mitigating regulatory compliance risk.
• Established Director Team: Three directors have been in place since incorporation, which may provide operational continuity and governance stability.
• Growing Scale of Operations: The average number of employees increased substantially from 5 to 80 during the year, indicating business expansion and potential for future revenue growth.

4. Due Diligence Notes:

• Examine Cash Flow Statements and Profitability: Absence of the income statement means profitability and cash generation cannot be assessed. Confirm underlying trading performance and sustainability.
• Assess Debtors’ Quality and Credit Terms: Investigate the nature and collectability of the large debtor balances to understand liquidity risk.
• Review Bank Facilities and Covenants: Understand the terms of secured debts, overdrafts, and any potential covenant breaches that could trigger enforcement or repayment demands.
• Clarify Tax and Social Security Liability Increase: Determine if the large jump in tax liabilities reflects accruals, disputes, or payment delays that may affect cash flow.
• Evaluate Going Concern Assumption: The directors state the company trades with creditor support; verify the sustainability of this support and any plans to restore positive equity.

Executive Summary:
Driven Personnel Ltd faces heightened financial risk characterized by negative working capital and shareholders’ funds, alongside increased reliance on bank overdrafts and elevated tax liabilities. While the company has expanded rapidly and remains compliant with filing requirements, significant liquidity and solvency concerns warrant further investigation into cash flows, debtor quality, and creditor arrangements to assess operational sustainability and risk exposure.