Company Number: 13036477

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial stress as of the latest accounts date (31 Dec 2023), primarily due to a negative net current asset position and a significant decline in net assets compared to prior years, which warrants caution but does not yet indicate imminent insolvency.

2. Key Concerns:

• Liquidity Strain: The company’s net current assets turned negative in 2023 (-£6,117) from a previously healthy positive position (£125,149 in 2022), indicating potential difficulties meeting short-term obligations. While cash improved modestly to £52,420, this may be insufficient relative to current liabilities of £485,101.
• Decline in Debtors and Total Assets: Trade debtors decreased sharply from £563,391 in 2022 to £157,626 in 2023, which could reflect reduced sales or collection challenges. Total assets less current liabilities dropped substantially from £193,643 to £40,939, signaling erosion of asset base and operational scale.
• Long-Term Creditors and Provisions: The company has creditors due after one year (£22,202) and provisions for liabilities (£11,764) as of 2023, which may impact future cash flows and require monitoring to understand the nature and timing of these obligations.

3. Positive Indicators:

• Compliance and Filing: The company is current on its statutory filings with Companies House (accounts and confirmation statements are not overdue), indicating good regulatory compliance.
• Active Business with Industry Focus: The company operates in wholesale distribution of machinery and equipment (SIC 46690) with an active website and contact details, suggesting an ongoing operational presence.
• Stable Governance: The company has two directors appointed since incorporation with no indication of disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp fall in trade debtors and current assets in 2023 to assess whether this is due to a change in trading activity, credit control issues, or balance sheet write-downs.
• Review cash flow statements and any available management accounts to evaluate liquidity trends and the company's ability to service current liabilities.
• Clarify the nature of provisions for liabilities and long-term creditors to understand contingent risks or upcoming obligations.
• Confirm the current trading status and business pipeline to assess operational sustainability given the financial deterioration.
• Examine any related party transactions or financing arrangements that may impact the company’s financial health.