NFO BRISTOL LIMITED

Executive Summary

NFO Bristol Limited maintains a positive net asset base and complies with filing requirements, indicating basic financial and regulatory stability. However, low cash levels relative to liabilities and significant director advances highlight liquidity and governance risks that warrant further investigation. Overall, the company exhibits medium risk primarily due to its limited scale and potential cash flow vulnerabilities.

NFO BRISTOL LIMITED - Analysis Report

Company Number: 13478196

Analysis Date: 2025-07-29 15:17 UTC

1. Risk Rating: MEDIUM
   NFO Bristol Limited shows modest net assets and positive working capital, which are good signs of solvency. However, the relatively low cash balance compared to current liabilities and significant director advances pose liquidity and governance concerns for investors.

2. Key Concerns:

• Liquidity Risk: Cash on hand (£7,983) is low relative to current liabilities (£53,111), indicating potential short-term cash flow constraints despite a positive net current asset position supported mainly by debtors.
• Director Loans: The director has drawn advances totaling £55,515, which raises questions about company cash flow management and potential conflicts of interest or reliance on director funding.
• Limited Scale and Employee Base: With only one employee and small asset base, the operational sustainability and scalability of the business may be limited, increasing business risk.

3. Positive Indicators:

• Solvency Position: Net assets increased from £23,636 in 2022 to £37,698 in 2023, indicating retained earnings and some growth.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, showing regulatory compliance and good administrative governance.
• Sole Director and PSC Alignment: The sole director (Ms. Louise Prosser) controls 75-100% of shares and voting rights, which may streamline decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: Are these advances formal loans, drawings, or something else? What are the repayment terms and risks?
• Review debtor quality and collection periods to assess if receivables are collectible and not inflating working capital.
• Understand the business model and sustainability given the micro scale, single employee, and limited fixed assets.
• Confirm no hidden liabilities or contingent risks not disclosed in the accounts.
• Verify if there are any plans for growth, additional financing, or operational changes that impact risk profile.