Company Number: 14721215

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: HIGH
   Sabat Shipping Limited exhibits significant solvency and liquidity risks based on the financial information for its first accounting period. The company’s current liabilities nearly equal its current assets, but the large amount of long-term creditors, including director loans, indicates potential funding strain. The extremely low net assets and shareholders’ funds of only £100 further amplify financial vulnerability.

2. Key Concerns:

• Solvency and Leverage: The company reports total creditors after more than one year of £1,690,890, comprising director loans (£804,800) and other creditors (£886,090). This substantial indebtedness against minimal equity points to high leverage and solvency risk.
• Liquidity Profile: Although current assets equal £1,690,990, the bulk is in debtors (£1,611,400) with only £79,590 in cash. Heavy reliance on receivables for liquidity is risky, especially for a new company with no operating history or employees.
• Operational Sustainability: The company has no employees and is in its first year of trading. Without profitability data, and given the lack of an audit or profit and loss account filing, the operational viability and cash flow generation capability are unclear.

3. Positive Indicators:

• Timely Filings: All statutory filings including accounts and confirmation statements are up to date, indicating sound governance compliance to date.
• Clear Ownership and Control: Ownership is concentrated among three individuals with defined shareholdings and voting rights, which can facilitate rapid decision-making.
• Industry Focus: The company operates in cargo handling and sea freight transport services, sectors with potential for growth, assuming proper management and market conditions.

4. Due Diligence Notes:

• Review Director Loans and Creditors: Investigate the terms, repayment schedules, and security of the director loans and other creditors to assess financial risk and creditor priority.
• Cash Flow and Profitability Projections: Obtain internal management accounts or forecasts to evaluate the company’s cash flow generation and operational viability.
• Debtor Quality and Concentration: Examine the composition and aging of the large debtor balance to determine collectability and dependency on key clients.
• Corporate Governance Practices: Confirm that no related party transactions or conflicts of interest exist given the director’s significant financial involvement.
• Future Capital Requirements: Assess how the company plans to fund working capital and growth given the minimal equity base.