Company Number: 12557531

Analysis Date: 2025-07-20 15:19 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and shareholder funds with a micro-entity classification. However, current liabilities exceed current assets, indicating a working capital deficit. The presence of long-term creditors and relatively thin equity buffers suggest some solvency and liquidity risks.

2. Key Concerns:

• Working Capital Deficit: Current liabilities (£2.35m) surpass current assets (£2.29m) as of 2024, resulting in negative net current assets, signaling potential short-term liquidity pressure.
• Long-Term Creditors: The company reported creditors falling due after more than one year (£48.5k), which may strain cash flow if not managed prudently.
• Modest Equity Base: Shareholder funds increased slightly to £111.8k but remain low relative to liabilities, limiting financial flexibility and resilience to adverse events.

3. Positive Indicators:

• Consistent Filing and Compliance: Recent accounts and confirmation statements are filed on time with no overdue status, indicating good regulatory compliance.
• Stable Employee Base: The company maintains a steady workforce of 9 employees, suggesting operational stability.
• Improved Net Assets: Net assets have increased from £96.7k in 2021 to £111.8k in 2024, reflecting slow but positive financial growth.

4. Due Diligence Notes:

• Review detailed creditor aging to assess the risk of overdue or defaulted payables and the nature of long-term creditor agreements.
• Analyze cash flow statements (not provided) to understand liquidity management and the ability to meet short-term obligations.
• Investigate the nature of fixed assets and any encumbrances or liens against them.
• Clarify ownership and control dynamics among PSCs, especially given changes and the presence of multiple directors with significant influence.
• Understand the business model and market position within the aluminium production sector, given the micro-entity status and relatively small asset base.