Company Number: 15055535

Analysis Date: 2025-07-20 15:59 UTC

1. Risk Rating: MEDIUM
   Larner Solutions Limited shows a negative net current asset position and significant short-term liabilities relative to cash holdings, which raises some liquidity concerns. However, the company maintains positive net assets and shareholder funds, and there are no overdue filings or signs of regulatory non-compliance at this early stage.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£91,703) exceed current assets (£84,315) resulting in a net current liability of £7,388, indicating potential short-term liquidity stress.
• Deferred Tax Liability: A material deferred tax provision of £11,553 exists, which will impact future cash flow when it crystallizes.
• Single Director and Shareholder Control: Dr. Andrew Larner holds majority shareholding and full voting rights, concentrating control and decision-making risk in one individual without evident additional oversight.

3. Positive Indicators:

• Clean Compliance Record: No overdue accounts or confirmation statements, suggesting good governance and compliance with statutory filing requirements.
• Positive Net Assets and Shareholders’ Funds: Net assets stand at £41,866 supported by tangible fixed assets, reflecting initial business investment and equity funding.
• Clear Accounting Policies: The financial statements comply with applicable small company accounting standards and are prepared on a historical cost basis, providing transparency.

4. Due Diligence Notes:

• Review the company’s cash flow forecasts and working capital management plans to assess how the negative net current asset position will be managed.
• Investigate the nature and timing of the deferred tax liability and its impact on future profitability and cash requirements.
• Understand the business model and revenue projections given the diversified SIC codes (management consultancy and manufacture of furniture/wood products) to evaluate operational sustainability.
• Confirm whether there are any related party transactions or contingent liabilities given the single director/shareholder structure.