Company Number: 14222571

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net liabilities as at the latest financial year end, indicating potential solvency concerns. Its financial position relies heavily on amounts owed by group companies, raising liquidity and counterparty risk.

2. Key Concerns:

• Negative Net Worth: Shareholders’ funds are negative (£299,828), reflecting accumulated losses or funding deficits which undermine capital adequacy.
• Net Current Liabilities: The company has net current liabilities of approximately £300k, implying it may struggle to meet short-term obligations without external support.
• Concentration of Debtors: Nearly all current assets (£7.43M) are amounts owed by related group undertakings, indicating high dependency on intra-group funding and potential credit risk if those entities face difficulties.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, suggesting compliance with statutory requirements and governance discipline.
• Directors’ Experience: The board comprises an investment professional and an accountant, which may support sound financial oversight and strategic decision-making.
• Going Concern Assumption: Directors affirm support from wider group companies to continue operations despite negative net assets, indicating potential access to group resources.

4. Due Diligence Notes:

• Investigate the financial health and creditworthiness of related group companies owing funds to this entity, particularly Clean Planet Teesside group companies.
• Review intercompany loan terms, repayment schedules, and any guarantees or covenants in place to assess liquidity risks.
• Confirm the nature and sustainability of the company’s business model as a holding company, including the operational cash flow generation and reliance on group funding.
• Assess any contingent liabilities or off-balance sheet exposures that may exacerbate solvency risks.
• Verify directors’ assessment of going concern and examine any plans or arrangements for recapitalisation or external funding.