Company Number: 13667311

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: MEDIUM
   The company shows strong current assets predominantly in debtors and cash, indicating substantial operational activity and receivables. However, current liabilities nearly match current assets, and there are significant long-term loans almost equal to current liabilities, suggesting potential liquidity strain. The net assets and shareholders' funds are positive but modest relative to the scale of assets and liabilities, reflecting thin equity buffers.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£7.7M) plus long-term creditors (£155.7M) are very high relative to net assets (£271k). Although current assets exceed current liabilities, the large creditor balances and substantial loan payables raise concerns about cash flow sufficiency and repayment capacity.
• Concentration of Control: The single entity PSR Equities Limited holds 75-100% of shares and voting rights, potentially concentrating decision-making and financial risk.
• Limited Profitability Disclosure: The profit and loss account is not included in the filings, limiting visibility into operational performance, profitability, and cash generation trends, which are critical for assessing sustainability.

3. Positive Indicators:

• Strong Debtor Base: Debtors increased from £131.9M to £145.9M year-on-year, which, combined with cash balances of approximately £17.9M, suggests active lending operations consistent with the company’s financial intermediation SIC code.
• No Overdue Filings: Annual accounts and confirmation statements are filed on time, indicating compliance with statutory obligations and governance discipline.
• Unqualified Audit Report: The auditor's report is unqualified, providing comfort that the financial statements are prepared in accordance with applicable standards and give a true and fair view.

4. Due Diligence Notes:

• Review the detailed terms and maturity profile of the loans payable and amounts owed to group undertakings to understand refinancing risk and covenant obligations.
• Obtain or review the company’s profit and loss statements or internal management accounts to assess profitability, interest coverage, and operational cash flows.
• Investigate the credit quality and collectability of the large debtor balances to evaluate the risk of impairment or bad debts.
• Assess the relationship and financial dependence on the parent company (PSR Equities Limited) to identify group-level risks or support mechanisms.