Company Number: 13809034

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: HIGH
   Somborne Partnership Ltd exhibits a high risk profile primarily due to its significant negative net assets position and rapidly increasing current liabilities, indicating severe solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders' Deficit: The company’s net liabilities worsened from -£55,871 in 2023 to -£148,909 in 2024, reflecting accumulated losses and erosion of equity capital.
• Liquidity Mismatch: Current liabilities (£229,942) substantially exceed current assets (£81,033) as of 2024, with cash reserves dropping from £36,104 to £18,850, suggesting potential cash flow difficulties to meet short-term obligations.
• Rapid Growth in Creditors: Trade creditors increased markedly from £104,026 in 2023 to £186,323 in 2024, indicating either delayed payments to suppliers or increased reliance on creditor financing, which may not be sustainable.

3. Positive Indicators:

• Consistent Business Activity: The company remains active with no overdue filings for accounts or confirmation statements, showing compliance with regulatory requirements.
• Stable Management Team: Directors and persons with significant control are consistent and appear to have significant involvement and control, which may support operational stability.
• Small Company Status & Accounting Exemptions: Filing under small company regime and entitlement to audit exemption reduces administrative burden and associated costs.

4. Due Diligence Notes:

• Examine Profit and Loss Details: The profit and loss account was not filed with the accounts; obtaining this information is critical to understand the causes of the losses and assess ongoing operational performance.
• Assess Cash Flow Forecasts: Review management cash flow projections to evaluate how the company plans to address its negative working capital and growing liabilities.
• Investigate Creditor Terms and Payment Practices: Understand the nature of the increased trade creditors and other creditors to assess if payment terms have deteriorated or if there are disputes or delays.
• Review Related Party Transactions: Given the concentration of shareholding and control among four directors, investigate any related party transactions that may impact financial health.
• Validate Going Concern Assumptions: While directors report accounts prepared on a going concern basis, the financial position suggests a need for scrutiny of the assumptions and plans underpinning this statement.