IUR CAPITAL LIMITED

Risk Rating: MEDIUM While the company remains solvent with a healthy net asset position and complies with regulatory capital requirements, significant liquidity concerns and a heavy reliance on debtors for asset valuation elevate the risk profile. The severe depletion of cash reserves over the past two years, juxtaposed with a high concentration of "other debtors," presents a material risk to operational stability should debtor collection falter.

Key Concerns: * Severe Liquidity Deterioration: Cash reserves have plummeted from £282,428 in 2023 to £14,628 in 2024, and further to just £9,047 in 2025. With current liabilities of £43,677 (including £27,792 in Corporation Tax), the company’s immediate cash position is extremely tight and insufficient to cover near-term obligations without realizing debtor balances. * Asset Quality and Debtor Concentration: Current assets are overwhelmingly concentrated in "Other debtors" (£310,380), which represents approximately 97% of total current assets. The accounts note a reliance on estimates for impairment of debtors, but given the lack of cash, the company is entirely dependent on the timely collection of these balances to maintain liquidity. * Eroding Regulatory Capital Buffer: As an FCA-regulated entity, the company must maintain a minimum capital requirement (driven by the ICARA base). While compliant, the buffer above the £149,980 requirement has narrowed significantly. Regulatory capital dropped from £389,018 in 2024 to £277,569 in 2025, leaving a thinner margin for error should asset values (specifically debtors) be written down.

Positive Indicators: * Regulatory Compliance: The company is clearly regulated by the FCA and actively monitors its regulatory capital requirement. It met its ICARA base capital requirement at the year-end, and the auditor issued an unqualified opinion, indicating no material uncertainties regarding going concern in the auditor's view. * Positive Net Assets and Solvency: Despite the drop from the previous year, the company reports net assets of £277,568 and total assets exceeding total liabilities by a comfortable margin. The company is fundamentally solvent on paper. * Director Loan Repayment: The director's loan balance has decreased significantly. In 2024, the director owed the company £92,330; during 2025, while an additional £72,010 was advanced, repayments of £141,035 were made, reducing the outstanding balance to £23,305. This demonstrates a commitment to reducing related party balances and returning cash to the business.

Due Diligence Notes: * Debtor Composition: Investigate the nature of the £310,380 "Other debtors." Determine the aging of these balances, the identity of the counterparties (especially if they are related parties or funds managed by the firm), and the realistic timeframe for conversion to cash. * Going Concern Assessment: Request management's cash flow forecasts and going concern projections for the next 12 months. Given the £9,047 cash balance and £43,677 in current liabilities, clarify how the company intends to fund operations and tax liabilities before debtors are realized. * FCA Regulatory Status: Verify the firm's current permissions and standing with the Financial Conduct Authority to ensure no enforcement actions or additional capital surcharges have been imposed. * Revenue and Profitability Trends: As a small entity, the Profit & Loss account is filleted and not delivered. Obtain full management accounts to understand the trajectory of revenue, operating costs, and the root cause behind the decline in net assets (e.g., trading losses vs. dividend distributions vs. asset write-downs).