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.