Company Number: 13023901

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: MEDIUM
   Justification: Showler Chambers Limited shows a marginally positive net asset position (£685) for the latest year after several years of negative equity, indicating some improvement. However, the company carries significant long-term liabilities (£130,135) relative to total assets (£133,265), and current liabilities slightly exceed current assets, implying tight liquidity. The going concern statement is positive but relies on directors’ forecasts without external audit assurance.

2. Key Concerns:

• High Long-Term Creditors: The company has substantial amounts due after one year (£130,135), which is close to the value of fixed assets, suggesting leveraged balance sheet and potential refinancing risk.
• Negative Working Capital: Net current assets are negative (£-165), indicating possible short-term liquidity pressures to meet obligations as they fall due.
• Minimal Share Capital and Equity: The share capital is nominal (£3), and shareholders’ funds are very low (£685), reflecting limited equity buffer and potentially constrained financial flexibility.

3. Positive Indicators:

• Improving Net Assets: The company moved from a net liability position (-£15,306 in 2023) to a small positive net asset position (£685 in 2024), reflecting some financial recovery or revaluation gains.
• Revaluation Gains on Property: The fixed assets include a revaluation uplift of £12,000 on land and buildings, supporting asset value stability.
• Timely Filing and Compliance: The company’s latest accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance practices.

4. Due Diligence Notes:

• Review the nature and terms of the £130,135 long-term creditors to assess repayment schedules, interest rates, and any covenants.
• Examine cash flow forecasts and working capital management to confirm ability to meet short-term liabilities given negative net current assets.
• Scrutinize directors’ forecasts supporting the going concern assumption, including assumptions on rental income or property market conditions given the company’s real estate focus (SIC codes 68209 and 68100).
• Investigate if any contingent liabilities or off-balance-sheet risks exist, particularly related to the provisions and deferred tax liabilities.
• Confirm the valuation method and frequency of investment property revaluation to ensure asset values are not overstated.