Company Number: 12718085

Analysis Date: 2025-07-29 16:55 UTC

1. Risk Rating: LOW
   The company demonstrates a strong financial position with substantial net assets exceeding £2.4 million as of June 2024, solid liquidity evidenced by cash holdings of approximately £1.65 million, and no overdue filings or indications of regulatory non-compliance. The absence of audit requirements due to small company status is noted but does not raise immediate concerns given the current financial metrics.

2. Key Concerns:

• Concentration of Control: Mr. James William Haslam holds 75-100% ownership and voting rights, with sole director status. This concentration may pose governance risks and potential challenges in oversight or succession.
• Related Party Transactions: The company has had loans advanced to its director, although these were repaid within nine months post year-end, scrutiny of such transactions is warranted to ensure arm’s length terms and appropriate disclosure.
• Fixed Assets Undepreciated: The company carries significant fixed assets, primarily freehold land and buildings, without depreciation. While justified by management due to ongoing maintenance, this accounting treatment could obscure asset impairments or wear and tear over time.

3. Positive Indicators:

• Strong Liquidity Position: High cash balances relative to current liabilities provide a comfortable liquidity buffer, reducing short-term solvency risk.
• Consistent Growth in Net Assets: Shareholders’ funds increased from approximately £1.18 million in 2021 to £2.45 million in 2024, indicating financial growth and capital retention.
• Compliance with Filing Obligations: All statutory accounts and confirmation statements are timely filed and up to date, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Review the nature and terms of related party loans, particularly the director loan account activity, to assess any potential conflicts or financial strain.
• Confirm the rationale and justification for the non-depreciation of fixed assets aligns with industry practices and does not mask underlying asset impairment.
• Investigate the company’s revenue streams and operational model for sustainability since financial statements omit the profit and loss account, limiting insight into profitability and cash flow generation.
• Assess governance structures given the sole director and sole significant controller status, including potential succession plans or risk mitigation measures.