Company Number: 13117430

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities worsening from -£4,153 in 2023 to -£30,083 in 2024, and a relatively small positive net asset base of £7,178. The substantial creditor balances falling due after one year (£84,932) further strain the financial position. These factors combined suggest elevated financial risk.

2. Key Concerns:

• Liquidity Deficit: Cash balances have declined from £49,069 in 2023 to £28,866 in 2024, while current liabilities have increased substantially to £58,949, indicating potential cash flow pressures to meet short-term obligations.
• High Long-Term Creditors: The existence of £84,932 in long-term creditors raises concerns about the company’s ability to service debt over time, especially given the limited equity cushion.
• Negative Working Capital Trend: The worsening net current assets position over two years signals deteriorating operational liquidity, which may impair ongoing operations without external support or restructuring.

3. Positive Indicators:

• Increasing Tangible Fixed Assets: Investment in motor vehicles increased significantly (from £57,693 to £122,193), indicating asset growth which may support operational capacity.
• No Overdue Filings: The company is current with both accounts and confirmation statement filings, suggesting regulatory compliance and good governance in this regard.
• Sole Director and PSC Stability: Mr. Sukhpreet Singh holds full control and has been consistent since incorporation, which may imply stable management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditor balances, particularly the long-term creditors, to assess repayment schedules and any covenants that may affect solvency.
• Review cash flow statements and recent operational performance to evaluate the company’s ability to generate sufficient liquidity going forward.
• Assess the reason for the absence of depreciation on tangible fixed assets (motor vehicles) despite the company policy stating depreciation is provided, as this may affect asset valuation and profit/loss accuracy.
• Confirm the company's revenue trends and contract pipeline given the cargo handling SIC code to understand operational sustainability.
• Verify any contingent liabilities or off-balance sheet commitments not reflected in the filleted accounts.