Company Number: SC749696

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: LOW

Justification: SIDLAW FACILITIES SERVICES LIMITED is a recently incorporated private limited company (November 2022) operating in the electrical installation sector. Its latest filed accounts (year ending March 2024) show a positive net asset position (£57,982) and net current assets (£41,841), with no overdue filings or regulatory issues noted. The director and sole significant controller is also the sole shareholder, indicating clear control and governance. The company has modest fixed assets and employs an average of three persons, consistent with a small-scale operational profile.

2. Key Concerns:

• Modest Cash Balance: The company holds only £2,188 in cash against current liabilities of £65,011, with most current assets tied up in debtors (£104,664). This could indicate potential short-term liquidity pressure if debtor collections are delayed.

• Reliance on Trade Debtors: High debtor balances relative to cash suggest cash flow depends heavily on timely receipt of payments from customers. Any delays could impact operational liquidity.

• Early Stage and Limited Financial History: Being a young company with just over one year of trading history, it lacks an extended financial track record to assess operational sustainability and growth trajectory.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company reports net assets of nearly £58k and positive net current assets, indicating that it currently holds sufficient assets to cover liabilities.

• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time with Companies House, demonstrating good regulatory compliance.

• Clear and Consistent Governance: Mrs. Charlene Davies is both director and 75-100% shareholder, providing straightforward decision-making and control.

• Tangible Fixed Assets: The company has invested in plant, equipment, and motor vehicles (£19,594 net), indicating tangible operational capacity.

4. Due Diligence Notes:

• Verify Debtor Quality and Aging: Investigate the composition and collectability of trade and other debtors to assess liquidity risk.

• Review Cash Flow Forecasts: Obtain management cash flow projections to understand timing of cash inflows and outflows, given low cash reserves.

• Monitor Contractual Revenue and Client Base: Understand contract terms, client concentration, and revenue stability to assess operational sustainability.

• Confirm No Director or Related Party Issues: Although no disqualifications or governance irregularities are indicated, confirm director background and related party transactions.

• Evaluate Tax Position: The company has corporation tax creditors of £24,895; review tax filings and payment plans to ensure no tax compliance risks.