MERIDIAN ADVISERS LTD

Executive Summary

Meridian Advisers Ltd exhibits moderate financial stability with improving cash balances and positive net current assets. However, the sharp increase in liabilities owed to directors and the limited operating history pose potential liquidity and solvency risks. Further due diligence on related party transactions and operational performance is recommended to fully assess financial sustainability.

MERIDIAN ADVISERS LTD - Analysis Report

Company Number: 14225273

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: MEDIUM
   Meridian Advisers Ltd is a recently incorporated private limited company operating in financial management. The company shows positive net current assets and increasing cash balances, which is encouraging. However, the substantial rise in current liabilities, particularly owed to directors, and the relatively low level of net assets relative to liabilities suggest moderate solvency and liquidity risk at this early stage.

2. Key Concerns:

• Significant Increase in Current Liabilities: Current liabilities rose sharply from £26,416 in 2023 to £142,179 in 2024, largely driven by increased amounts owed to directors (£92,570). This could indicate reliance on director loans or delayed creditor payments, potentially stressing liquidity.
• Concentration of Control and Related Party Balances: Both directors are also significant shareholders and the company owes a large sum to them. This related party exposure warrants scrutiny to ensure terms are commercial and sustainable.
• Limited Operating History and Small Net Asset Base: Incorporated in 2022, the company has a short track record. Net assets are modest (£28,437), which could limit financial resilience against adverse events or unexpected cash flow pressures.

3. Positive Indicators:

• Growing Cash Position: Cash at bank increased substantially from £27,795 to £162,645 over the last year, improving liquidity capacity.
• Net Current Assets Positive: Despite increased liabilities, net current assets remain positive at £28,437, indicating the company can currently meet short-term obligations.
• On-time Filing Compliance: Accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.

4. Due Diligence Notes:

• Examine the nature, terms, and repayment schedule of amounts owed to directors to assess sustainability and potential risks to cash flow.
• Review income statement details (not provided) to understand revenue sources, profitability, and operational cash flows.
• Investigate any contingent liabilities or off-balance-sheet commitments that could impact solvency.
• Validate controls around related party transactions to ensure compliance with corporate governance standards.
• Confirm that the company’s strategic plan supports growth of shareholder funds and reduction of reliance on director loans.