POLY GRAPHICS LIMITED

Executive Summary

Poly Graphics Limited presents a financially stable profile with strong liquidity and growing net assets over recent years. The company maintains good regulatory compliance with no overdue filings. However, limited visibility on profitability and increased hire purchase liabilities warrant further review to fully assess operational sustainability and cash flow risks.

POLY GRAPHICS LIMITED - Analysis Report

Company Number: 13009195

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: LOW
   Poly Graphics Limited demonstrates a solid financial position with positive net current assets, consistent net asset growth, and no overdue filings. The company appears solvent and well-managed based on the latest available data.

2. Key Concerns:

• Increasing hire purchase liabilities: The company has introduced medium-term hire purchase contracts totaling £45,306 (current and non-current combined), which could impact cash flows if not carefully managed.
• Concentration of significant control: One individual controls between 25-50% of shares and voting rights, which may affect governance balance.
• Absence of profit and loss details: The financial statements omit a profit and loss account and cash flow statement limiting visibility on operational profitability and cash generation.

3. Positive Indicators:

• Strong liquidity position: Current assets of £246,301 exceed current liabilities of £137,048, yielding net current assets of £109,253 and cash reserves of £81,846.
• Stable and growing net assets: Net assets have increased from £27,228 in 2020 to £113,631 in 2024, reflecting retained earnings growth and asset investment.
• Compliance with filing requirements: No overdue accounts or confirmation statements, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review the detailed profit and loss and cash flow information to assess operational performance and cash flow sustainability, which is not provided in the current filing.
• Understand the purpose and terms of the hire purchase agreements, including repayment schedules and impact on future liquidity.
• Evaluate the governance structure and shareholder agreements to ensure minority shareholder protections given the significant control held by one director.
• Confirm that the tangible fixed assets additions (£52,990) are aligned with business growth plans and verify depreciation policies.