SRC HOLDINGS (N.I.) LTD

Executive Summary

SRC HOLDINGS (N.I.) LTD faces significant liquidity and solvency risks largely due to large current liabilities exceeding its liquid assets. While asset revaluation has improved net equity, the company’s limited cash reserves and minimal share capital raise concerns about its ability to meet short-term obligations. Compliance with filing requirements is maintained, but further investigation into cash flow and liability structure is warranted.

SRC HOLDINGS (N.I.) LTD - Analysis Report

Company Number: NI677751

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with current liabilities vastly exceeding current assets, resulting in a negative net current asset position. Despite reported net assets, the heavy short-term obligations indicate a solvency risk.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £96,465 as of the latest accounts, suggesting inability to cover short-term debts with liquid assets.
• High Current Liabilities Relative to Cash: With only £3,274 in cash against nearly £100k in current liabilities, there is a clear liquidity strain.
• Minimal Share Capital and Equity: Share capital is nominal (£1), and although equity increased due to revaluation reserve, underlying operational profitability and cash flow generation appear weak or unreported.

3. Positive Indicators:

• Revaluation Reserve Increase: The company recorded a £20,000 increase in revaluation reserve, indicating an appreciation in fixed assets which improves reported net assets.
• Stable Director and No Overdue Filings: Company filings are up to date with no overdue accounts or confirmation statements, suggesting compliance with regulatory requirements.
• No Audit Requirement: The small company exemption from audit reduces administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly the bank loans (£72k) and other creditors, to assess repayment schedules and potential refinancing risk.
• Assess cash flow statements and profitability trends beyond balance sheet snapshots to evaluate operational sustainability.
• Review the rationale and valuation basis for the fixed asset revaluation to confirm its reliability and impact on solvency.