SKS FIRST LIMITED

Executive Summary

SKS FIRST LIMITED is a micro private limited company with a strong fixed asset base and timely regulatory filings, indicating solid governance practices. However, the recent negative net current assets position and outstanding director loans present moderate liquidity and financial risk concerns. Further due diligence on cash flows and asset quality is recommended to fully assess short-term solvency and operational stability.

SKS FIRST LIMITED - Analysis Report

Company Number: 13836688

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: MEDIUM
   SKS FIRST LIMITED shows a solid net asset base primarily driven by fixed assets; however, the negative net current assets position in the latest financial year and director loans raise moderate concerns about short-term liquidity and cash flow.

2. Key Concerns:

   • Negative Net Current Assets: The company’s current liabilities (£169k) exceed current assets (£47k) by approximately £122k in 2024, indicating potential liquidity stress to meet short-term obligations.
   • Director Loan Exposure: The unsecured, interest-free, repayable-on-demand director loan of £46.9k may affect cash availability and signals reliance on related-party funding.
   • Decline in Net Assets: Although net assets remain strong (£1.01m), there was a slight reduction from the prior year (£1.03m) which may reflect operational or asset valuation challenges that warrant monitoring.

3. Positive Indicators:

   • Strong Fixed Asset Base: Fixed assets increased year-on-year to £1.13m, providing a solid asset foundation and collateral potential.
   • No Overdue Filings: The company’s accounts and confirmation statements are filed on time, suggesting good regulatory compliance and governance discipline.
   • Stable Ownership and Management: The two directors and PSCs have maintained control since incorporation, indicating stable leadership without recent disruptive changes.

4. Due Diligence Notes:

   • Obtain detailed cash flow statements and working capital forecasts to assess liquidity management and ability to meet short-term liabilities.
   • Review the nature and terms of the fixed assets to understand their realizable value and impact on solvency.
   • Clarify the purpose, repayment plans, and implications of director loans to assess related-party risk and potential cash flow impact.
   • Confirm no contingent liabilities or off-balance sheet exposures that could affect solvency.
   • Consider the business model and revenue streams underlying this holding company structure to evaluate operational sustainability.