Company Number: 13261075

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: HIGH
   Septua Star Ltd exhibits significant liquidity and solvency concerns based on its financial position. The company’s net current liabilities and minimal cash balance indicate a strained short-term financial position, while substantial creditor balances raise questions about long-term solvency and operational viability.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £133k as of 31 December 2023, indicating it cannot cover short-term debts with current assets, posing immediate liquidity risk.
• Minimal Cash Reserves: With only £88 in cash available, the company lacks liquid funds to meet day-to-day obligations without additional financing or operational cash inflows.
• High Creditors and Debt Levels: Total creditors exceeding £265k (split between short-term and long-term creditors) are significant compared to net assets of £56.5k, suggesting potential solvency issues and reliance on external funding, including amounts owed to group undertakings.

3. Positive Indicators:

• Substantial Fixed Asset Investments: The company holds investments valued at £321.6k, which may represent underlying value in subsidiaries or group companies that could support future financial stability.
• Equity Base Maintained: Shareholders’ funds remain positive at £56.5k with consistent share premium, indicating some capital buffer.
• No Overdue Filings or Regulatory Breaches: The company is current with statutory filings and accounts, demonstrating compliance with Companies House requirements and governance standards.

4. Due Diligence Notes:

• Clarify the nature and recoverability of the fixed asset investments to assess if these can be monetized or generate cash flow to alleviate liquidity risks.
• Investigate creditor composition, especially amounts owed to group undertakings and other creditors, including terms, interest, and repayment schedules.
• Review operational activities and revenue streams to determine if the company can generate sufficient cash flow to meet liabilities, given the absence of employees and minimal cash.
• Examine management plans or agreements referenced in the directors’ report regarding arrangements with creditors supporting going concern assumptions.
• Assess any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.