Company Number: 12523182

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

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and increasing shareholder funds, indicating some capital stability. However, persistent negative net current assets (working capital deficits) and high current liabilities relative to current assets raise liquidity concerns. The absence of overdue filings and no signs of insolvency proceedings mitigate immediate regulatory risk.

2. Key Concerns:

• Negative Net Current Assets: The company has substantial current liabilities exceeding current assets by £83k in the latest year, indicating potential short-term liquidity risk.
• High Reliance on Group Liabilities: £186,598 of current liabilities are owed to group undertakings, suggesting dependence on related parties to meet obligations. This intercompany liability concentration could pose risk if group support weakens.
• Limited Share Capital: Nominal share capital of £2.00 may limit the company’s ability to raise equity quickly in financial stress scenarios.

3. Positive Indicators:

• Consistent Increase in Net Assets and Shareholders’ Funds: Shareholders’ funds grew from £84,900 in 2023 to £105,441 in 2024, reflecting retained earnings or capital injections.
• Strong Cash Position: Cash balances have increased to £95,413, representing a strong liquidity buffer relative to total current assets.
• No Overdue Filings and Active Status: Compliance with filing deadlines and active company status demonstrate good regulatory governance.

4. Due Diligence Notes:

• Investigate the nature and terms of intercompany liabilities to understand the risk and support mechanisms behind the large owed amounts.
• Review the company’s cash flow statements and forecasts to assess if negative working capital is managed sustainably.
• Confirm the operational business model and revenue streams, as limited disclosed turnover information restricts assessment of operational stability.
• Assess any contingent liabilities or off-balance sheet risks not evident from the filleted accounts.
• Confirm if any external financing arrangements exist beyond group undertakings.