Company Number: 14817920

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (April 2023) and has submitted its first set of accounts timely. While it shows a positive net asset position, its net current assets are minimal (£3,491), indicating tight working capital. The high level of current liabilities almost equal to current assets raises concerns about liquidity and short-term solvency, warranting cautious monitoring.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£439,515) nearly match current assets (£443,006), leaving a very slim net working capital buffer (£3,491). Any delay in debtor collection or unexpected expenses could quickly impact cash flow.
• High Related Party Debt: A significant portion of current liabilities (£365,988) is owed to group undertakings, which may indicate reliance on intra-group funding rather than external cash generation. The nature and terms of these debts should be scrutinised.
• Limited Operational History: The company commenced trading in June 2023 and has only one financial year’s data. This limited track record reduces visibility on operational stability and financial trends.

3. Positive Indicators:

• Timely Compliance: All filings including accounts and confirmation statements are up to date, demonstrating adherence to regulatory requirements and good governance.
• Positive Net Assets: Despite being new, the company reports positive net assets (£3,491), showing it is not insolvent at the balance sheet date.
• Backing by Parent Entity: The company is 75-100% controlled by Acclaim Dmw Holdings Ltd, which may provide strategic and financial support. The related party balances suggest an active group relationship that could be a safety net.

4. Due Diligence Notes:

• Review the terms and repayment schedule of amounts owed to group undertakings to assess the risk of these liabilities crystallising or requiring refinancing.
• Evaluate debtor ageing and collectability, given the high debtor balance (£357,321) relative to cash on hand, to identify potential bad debts or cash flow timing issues.
• Investigate trading performance since commencement, including revenue, margins, and customer concentration, to assess operational sustainability.
• Confirm the extent of any contingent liabilities or off-balance sheet commitments not disclosed in the small companies’ accounts.
• Monitor future filings for trends in working capital, profitability, and cash generation to refine risk assessment as the company matures.