Company Number: 13401681

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: MEDIUM

The company demonstrates solid net asset positions and positive working capital, indicating a generally stable financial footing. However, the presence of significant finance lease obligations and a reliance on amounts owed by group undertakings (debtors) to support current assets introduces some risk to liquidity. The lack of employees and absence of an audit also suggest limited operational scale and scrutiny at this stage.

2. Key Concerns:

• Liquidity Concentration Risk: The current assets are substantially composed of debtors owed by group undertakings (£513,918 of £521,098 total current assets), representing potential collectability risk if the group entity faces financial difficulties. Cash balances are very low (£7,180).
• Finance Lease Obligations: The company carries a notable finance lease liability (£115,092 total), with nearly half due after one year. This fixed financial commitment may strain cash flow especially if operational income is limited.
• Operational Scale and Sustainability: The accounts report no employees and no audit was performed, which may indicate a small operational scale with limited revenue-generating activities. This raises questions about ongoing business sustainability without more detailed information.

3. Positive Indicators:

• Strong Net Asset Base: Net assets remain robust at £542,333, reflecting positive equity and retained earnings.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Controlled Ownership: A single individual, Mr Carl Michael Siddall, holds over 75% control and is the sole current director, which may facilitate decisive governance and strategic direction.

4. Due Diligence Notes:

• Investigate the nature and financial health of the group undertakings owing the company large debtor balances to assess collectability and group risk exposure.
• Review cash flow statements or management accounts to confirm the company’s ability to meet finance lease obligations and other short-term liabilities.
• Understand the operational model given the absence of employees—clarify revenue sources, contracts, and sustainability plans.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed.
• Consider the impact of the director resignation in February 2025 and whether governance structures remain robust under the sole director.