Company Number: 13888514

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: MEDIUM

Justification: Narberth Travel Ltd shows growth in net assets and fixed assets year on year, indicating some reinvestment and expansion. However, the current liabilities exceed current assets in the latest year, resulting in negative net current assets (working capital deficit). This liquidity strain combined with relatively significant provisions and a modest company scale suggest moderate financial risk.

2. Key Concerns:

• Negative net current assets of £59,793 at 31 March 2024, indicating potential short-term liquidity stress.
• Sharp increase in current liabilities from £164,843 to £362,170 in one year, driven largely by "other creditors," which may contain short-term obligations or accruals needing careful review.
• Recognition of provisions amounting to £33,590 in 2024 where none existed previously; the nature and timing of these obligations need clarification as they may impact cash flow.

3. Positive Indicators:

• Net assets and shareholders’ funds almost doubled from £82,346 to £150,074 over the year, reflecting retained earnings growth.
• Increase in fixed assets from £46,773 to £243,457 indicates investment in tangible and intangible assets, supporting operational capacity.
• The company is current with all statutory filings (accounts and confirmation statements), evidencing regulatory compliance.
• Director and persons with significant control are stable and resident in the UK, with no adverse governance flags noted.

4. Due Diligence Notes:

• Investigate the composition of "other creditors" within current liabilities to assess whether these are trade payables, accruals, or financing arrangements impacting liquidity.
• Clarify the provisions recognized in 2024: their nature, expected timing, and impact on cash flow.
• Review cash flow statements and management forecasts (not provided) to understand how the company plans to manage the working capital deficit.
• Assess the recoverability of debtors (£189k), particularly the increase in other debtors, to evaluate credit risk.
• Confirm if there is any borrowing or contingent liabilities not disclosed that could affect solvency.