Company Number: 13682511

Analysis Date: 2025-07-29 17:27 UTC

1. Risk Rating: LOW
   The company demonstrates solid financial performance with substantial turnover and healthy shareholders’ funds. It has filed its accounts and confirmation statements on time, with no indication of regulatory non-compliance. Auditor’s opinion confirms the appropriateness of going concern assumption and compliance with accounting standards.

2. Key Concerns:

• The accounts are for the period ended 30 September 2022, and the company was incorporated in October 2021, so the trading history is relatively short, limiting long-term trend analysis.
• The company’s goodwill balance is negative (£2,017,750), which is unusual and requires clarification as it may impact net assets and valuation.
• The balance sheet excerpt is truncated and does not show the full details of current liabilities and net current assets, limiting full solvency and liquidity assessment.

3. Positive Indicators:

• Strong turnover of £27.4m in the first reported period reflects good business scale and market presence.
• Operating profit margin of 6.1% and gross profit margin of 42.1% indicate operational efficiency.
• Shareholders’ funds at £11m suggest a strong equity base.
• Cash at bank and in hand is reported at over £10.6m, indicating very strong liquidity.
• No overdue filings and no indication of director disqualifications or governance issues.
• Auditor’s report is unqualified with no material uncertainties about going concern.

4. Due Diligence Notes:

• Investigate the nature and accounting treatment of the negative goodwill reported to ensure it is correctly stated and understood.
• Obtain full balance sheet details to assess current liabilities, working capital, and net current assets comprehensively.
• Review subsequent trading performance and recent financial information beyond September 2022, especially given supply chain challenges noted in the strategic report.
• Confirm the ownership and control structure among the significant shareholders and directors to understand any related party transactions or concentration risks.
• Validate that lease commitments and other contingent liabilities are manageable as described.
• Assess the impact of any post-year-end supply issues or economic changes on ongoing operational stability.