Credit Analysis: NTS 247 LTD

1. Credit Opinion: DECLINE

This is an automatic decline. The company is currently In Administration with court-appointed administrators controlling the company's affairs. No new credit facilities should be extended under standard commercial terms. The company cannot enter into binding credit arrangements without administrator approval, and any lending would rank behind the administrator's costs and preferential creditors.

The recent name change from "A Bubble Company Limited" to "NTS 247 LTD" on 25 June 2025 — while in administration — warrants scrutiny. Name changes during insolvency proceedings can sometimes signal an attempt to distance the entity from its troubled trading history.

2. Financial Strength: WEAK / INSOLVENT

The balance sheet has been technically insolvent since 2020, with consistently negative shareholders' funds:

Key concerns: - Negative equity of £33,269 means total liabilities exceed total assets - The company only continues to trade due to director loan support — explicitly disclosed as a going concern dependency in the accounts - Share capital remains at just £1,000, with accumulated losses of £34,269 eroding any equity buffer - Tangible fixed assets of £135,338 are insufficient to cover the deficit

The 2023 accounts were prepared on a going concern basis solely because of director support — a precarious position that has now collapsed given the administration appointment.

3. Cash Flow Assessment: MARGINAL BUT DETERIORATING

Liquidity Position (2023): - Current Assets: £1,641,659 - Current Liabilities: £1,516,433 - Current Ratio: 1.08x — barely adequate, leaving no margin for disruption - Net Current Assets: £125,226 (down from £257,067 in 2022 — a 51% decline)

Cash: £818,910 appears healthy but is misleading: - Debtors increased 54% from £521,286 to £804,499 — potential collection risk or revenue recognition concern - Stocks declined from £44,657 to £18,250 — possible inventory liquidation - The cash position may reflect advance customer payments or restricted funds given the catering business model

Working Capital Pressure: - Creditors falling due within one year: £1,516,433 — substantial short-term obligations - Long-term creditors of £293,833 (down from £463,834) — likely director loans being reclassified or repaid - With 55 employees, monthly payroll obligations are significant for an event catering business

4. Monitoring Points

If any existing exposure exists or a facility was previously extended:

1. Administration Proceedings: Monitor administrator appointments, creditors' meetings, and any proposals for Company Voluntary Arrangements or asset sales

2. Director Conduct: Mr Michael Collins holds significant control through multiple PSC entities (Collins & Co Holdings Ltd and Mc London Holdings Limited each claiming 50-75% ownership — this appears inconsistent and should be flagged). Any director loans should be verified for subordination

3. Preferential Creditor Risk: New lending during administration would rank behind administrator costs, preferential creditors (employees, HMRC), and floating charge holders

4. Connected Party Transactions: The PSC structure suggests related-party lending that may be preferentially structured — investigate whether director loans have security or preferential terms

5. Trading While Insolvent: Directors continued trading through 2020-2023 with negative equity — potential wrongful trading risk under Insolvency Act 1986 s.214

6. Sector Risk: Event catering (SIC 56210) is highly discretionary and vulnerable to economic downturns — the post-pandemic recovery appears to have stalled