Company Number: OC437324

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a positive net asset position and no overdue filings, yet the financials reveal certain peculiarities such as significant loans due to members and fluctuating current liabilities that warrant caution.

2. Key Concerns:

• Loans and Other Debts Due to Members: The balance sheet shows a large and growing loan amount (£263,677 in 2024) owed to members, which may indicate reliance on member funding rather than external financing or generated profits. This could pose a risk if members withdraw support.
• Small Turnover and No Employees: Turnover is very low (£14,654 in 2023) with no employees, raising questions about operational scale and sustainability of business activities.
• Fluctuating Current Liabilities: The current liabilities have varied significantly year-on-year, and the 2021 accounts show extremely high current liabilities relative to assets, which might suggest past liquidity stress.

3. Positive Indicators:

• Positive Net Current Assets: The LLP has maintained positive net current assets (£21,924 in 2024), indicating the ability to meet short-term liabilities from current assets.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good compliance and governance practices.
• Stable Fixed Asset Base: Fixed assets remain consistent around £240k, suggesting some tangible asset backing for the business.

4. Due Diligence Notes:

• Investigate the nature and terms of the loans due to members to assess repayment risk and whether these are informal arrangements or documented liabilities.
• Clarify the LLP’s business model and source of income given the low turnover and absence of employees, to understand operational viability.
• Review historical cash flow statements if available, to better evaluate liquidity trends and any previous financial distress.
• Confirm the identity and background of members with unknown nationality to ensure no regulatory or governance concerns.