Company Number: 13120518

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and net equity, indicating solvency at the balance sheet date. However, the high level of debtors relative to current liabilities and the concentration of creditors in related parties (directors’ loans and associated companies) introduce potential liquidity and related-party risk factors. The absence of employees suggests limited operational scale, increasing dependence on key individuals and possibly affecting operational stability.

2. Key Concerns:

• Related Party Creditors Concentration: Substantial amounts owed to directors and related entities (Rase Developments Limited and Lucas Machinery Limited) account for nearly all current liabilities (£2.16m). The terms and repayment prospects of these loans should be clarified to assess liquidity risk.
• High Debtors Balance: Current assets are predominantly debtors (£3.33m), implying significant amounts receivable, likely loans or receivables from related parties or customers. The collectability and aging profile of these amounts is critical to confirm liquidity and cash flow stability.
• Minimal Share Capital and No Employees: Share capital is nominal (£1), and there are no employees reported, indicating a potentially thin capital base and reliance on external capital or services. This may affect operational sustainability and scalability.

3. Positive Indicators:

• Consistent Growth in Net Assets: Shareholders’ funds increased from £675k in 2021 to £1.17m in 2024, indicating retained earnings or capital injections that strengthen the balance sheet.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating good compliance and governance practices.
• Clear Ownership and Control: The company is wholly owned by Rase Investments Limited, providing a transparent control structure and likely access to group resources.

4. Due Diligence Notes:

• Investigate the nature, terms, and repayment schedule of the directors’ loan accounts and balances owed to related companies to evaluate liquidity risk and potential conflicts of interest.
• Examine the composition and aging of debtor balances to assess collectability and cash flow reliability.
• Review any intercompany agreements or guarantees underpinning the loans and receivables.
• Confirm the operational model given no employees are reported—whether services are outsourced or the company is primarily a holding or lending vehicle.
• Verify if any contingent liabilities or off-balance sheet commitments exist that could impact financial stability.