Company Number: 13821100

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM

Justification: Fire & Evacuation Services Ltd shows substantial growth in assets and net equity within a short operational period since incorporation in late 2021. The company maintains a positive net asset position with increasing shareholders’ funds and good levels of cash and debtors. However, the significant rise in current liabilities and deferred tax provisions, alongside limited disclosure of profitability and absence of employees reported, introduces moderate solvency and operational risks. The lack of audit and limited financial narrative restricts deeper assessment.

2. Key Concerns:

• Rapid Increase in Current Liabilities: Current liabilities surged from £220k in 2023 to over £1.3M in 2024, largely driven by VAT and corporation tax. This could strain short-term liquidity if cash collections from debtors are delayed or impaired.
• Large Debtor Balances: Debtors have increased markedly to £901k in 2024, over five times the 2023 level. High receivables concentration or collection issues could impact cash flow reliability.
• Deferred Tax Liability Growth: Deferred tax provision escalated to £62k in 2024 from £6k in 2023. This suggests timing differences or tax exposures that may crystallize as cash outflows in the near term.

3. Positive Indicators:

• Strong Cash Position: Cash at bank grew almost tenfold to £873k in 2024, indicating improved liquidity buffers.
• Positive Net Current Assets and Net Assets: With net current assets of £473k and net assets of £660k, the company shows a healthy working capital position as at the latest year-end.
• Directors’ Stability and Expertise: All directors are active firefighters, likely providing relevant industry insight and operational experience aligned with the company’s fire service activities (SIC 84250).

4. Due Diligence Notes:

• Review detailed profit and loss or management accounts if available to verify revenue recognition, contract margins, and overall profitability trends since the company has opted for full exemption from audit and has not filed a profit and loss account.
• Investigate debtor composition, ageing, and collectability to assess credit risk and impact on working capital.
• Clarify the nature of the significant increase in current liabilities, particularly VAT and corporation tax, including payment schedules and any potential disputes or deferred payment arrangements.
• Examine deferred tax calculations and trigger events to understand future cash tax liabilities.
• Confirm no director disqualifications or compliance issues exist given the multiple directors and their industry roles.
• Assess operational capacity and sustainability given the company reports no employees aside from directors.