Company Number: 13558607

Analysis Date: 2025-07-20 15:41 UTC

1. Risk Rating: MEDIUM
   Flexiservices Ltd shows modest net assets and positive working capital, indicating basic solvency. However, the increased current liabilities and relatively low fixed assets, coupled with a single director and employee, present moderate operational and liquidity risks typical of a small consultancy start-up.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities increased by nearly 48% from £14,265 in 2023 to £21,104 in 2024, which could pressure short-term liquidity if not managed carefully.
• Concentration Risk: The company has only one employee/director who is also the sole shareholder, which poses operational continuity and governance risks.
• Debtor Composition and Collection: Debtors remain high (£11,836) relative to cash (£13,609), with a significant portion classified as "other debtors" (£1,319) which may be less liquid or more uncertain.

3. Positive Indicators:

• Increasing Net Assets and Working Capital: Net assets grew from £1,316 in 2023 to £5,280 in 2024, and net current assets improved from £1,316 to £4,341, indicating growth and improved balance sheet strength.
• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements, suggesting good compliance discipline.
• Profit Retention: Profit and loss reserves increased, reflecting retained earnings that provide a buffer for future obligations.

4. Due Diligence Notes:

• Verify the nature and collectability of the "trade debtors" and "other debtors" to assess cash flow reliability.
• Review payment terms and creditor aging to understand the reason behind growing current liabilities and potential payment delays.
• Assess the business model sustainability given the sole director/employee structure and whether any key person risk mitigation plans exist.
• Confirm the deferred tax liability recognition and its impact on future cash flows.