Company Number: 15005990

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: HIGH
   The company displays significant solvency and liquidity risks primarily due to reliance on related party debts and director loans for operational funding. Its net assets and shareholders’ funds are minimal, and there is limited independent working capital.

2. Key Concerns:

• Related Party Debt Concentration: £24,000 debtor outstanding from Tokyo Technologies Ltd, a related party experiencing financial difficulties and restructuring, with repayment expected beyond one year. This creates uncertainty around recoverability and cash inflows.
• Director Loan Dependency: £23,949 loan from Director C N Evans classified as a long-term creditor, interest-free and unsecured with informal repayment terms, indicating dependency on director support rather than independent financing.
• Minimal Net Assets and Cash: Net assets stand at £70 and cash at only £33 at year-end, reflecting extremely limited liquidity and financial buffer to meet short-term obligations or unforeseen expenses.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue accounts or confirmation statements; compliance with Companies House filing requirements is up to date.
• Clear Ownership and Control: Major shareholders and persons with significant control are clearly identified, with no apparent governance issues or director disqualifications.
• Business Activity Established: The company has commenced trading within a short period since incorporation, with revenues generated (e.g., £6,000 fees from Node MSP Ltd), indicating some operational activity and client relationships.

4. Due Diligence Notes:

• Investigate the financial health and restructuring prospects of Tokyo Technologies Ltd, given the material debtor balance and its impact on Node Resourcing Ltd’s cash flow and asset recoverability.
• Clarify the formal terms and security arrangements (if any) surrounding the director loan, including any plans for regularization or repayment schedules.
• Assess the company’s current trading performance and cash flow projections beyond the reporting date to determine operational sustainability and ability to convert debtors into cash.
• Review intercompany arrangements and potential conflicts of interest given multiple related party transactions and overlapping director roles.