SAFHG LIMITED

Executive Summary

SAFHG LIMITED is a micro-entity with significant fixed assets and long-term liabilities nearly matching those assets, classified as dormant and minimally operational. While compliance filings are current and net assets are positive, the company’s solvency depends heavily on the realizability of fixed assets and the management of its substantial creditor obligations. Further inquiry into debt terms, operational activity, and asset liquidity is essential to fully assess investment risk.

SAFHG LIMITED - Analysis Report

Company Number: 13213048

Analysis Date: 2025-07-20 18:58 UTC

1. Risk Rating: MEDIUM

Justification: SAFHG LIMITED shows a significant amount of fixed assets (£1.4M) and net assets of £124,455 as of 2024, indicating some asset backing. However, the company also reports large creditors due after more than one year (£1.275M), which nearly matches the value of fixed assets, pointing to substantial long-term liabilities. The company is small, classified as micro-entity, and dormant according to SIC code, suggesting limited trading activity. The presence of only one employee and no turnover data reduces visibility on operational viability. The financials do not indicate liquidity issues yet, but the high level of liabilities relative to net assets warrants caution.

2. Key Concerns:

• High long-term liabilities (~£1.275M) almost equivalent to fixed assets, raising solvency risk if asset values are not readily realizable.
• Dormant company classification implies no active trading or revenue generation, which may affect cash flow and sustainability.
• Limited financial disclosures and no audit reduce transparency on financial health and operational risks.

3. Positive Indicators:

• Positive net assets (£124,455) reflect some retained equity and buffer against liabilities.
• Accounts and confirmation statements are up to date, indicating good compliance with filing requirements.
• The director has been in place since incorporation, suggesting stable governance.

4. Due Diligence Notes:

• Clarify the nature and terms of the large creditors’ debt due after more than one year, including interest rates, repayment schedules, and security.
• Confirm the actual operational status beyond dormant classification to assess revenue generation and cash flow prospects.
• Investigate asset valuation methods and liquidity to understand if fixed assets can cover liabilities if required.
• Review any related party transactions or guarantees involving the controlling shareholders (Kee family).
• Consider obtaining management accounts or cash flow forecasts to supplement the limited public financial data.