INDEXTHIRD LIMITED

Executive Summary

INDEXTHIRD LIMITED is a micro-entity holding company with modest net assets and a rising level of long-term liabilities, presenting a medium solvency risk profile. The company maintains regulatory compliance with no overdue filings and shows equity growth, but the high creditor balance and limited operational data warrant further investigation into liquidity and business sustainability. Investors should focus due diligence on long-term creditor terms and underlying business activities before committing capital.

INDEXTHIRD LIMITED - Analysis Report

Company Number: 14194247

Analysis Date: 2025-07-29 17:08 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds with growth over two years, but the relatively low equity base (£182,941) against sizeable liabilities due after more than one year (£3,055,209) indicates moderate solvency risk. The micro-entity status limits available financial detail, warranting caution.

2. Key Concerns:

• High Long-Term Creditors: Creditors falling due after more than one year have increased substantially from £1.76m to £3.05m, which may pressure future cash flows and solvency if not managed prudently.
• Relatively Low Net Assets: Net assets remain modest compared to liabilities, implying limited buffer for absorbing losses or financial shocks.
• Limited Operational Information: The company is classified as a holding company (SIC 64209) with only two employees, suggesting a non-operational business model relying on subsidiary performance or investments, which entails dependency risk.

3. Positive Indicators:

• Improved Net Assets and Shareholder Funds: Net assets more than doubled from £81,924 to £182,941, indicating positive equity growth.
• Current Assets Exceed Current Liabilities: Despite the high long-term creditors, current assets (£2.8m) exceed current liabilities (£3.05m) marginally, reflecting reasonable short-term liquidity.
• No Overdue Filings: Accounts and confirmation statement filings are up to date, indicating regulatory compliance and good governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors to assess repayment schedules, interest obligations, and covenant risks.
• Review the company’s cash flow statements and subsidiary financials (if any) to evaluate operational cash generation and liquidity adequacy.
• Confirm any contingent liabilities or off-balance sheet commitments not reflected in micro-entity accounts.
• Understand the business model and dependency on underlying holdings or investments to assess sustainability and operational risks.