Company Number: 13435660

Analysis Date: 2025-07-29 18:46 UTC

1. Risk Rating: MEDIUM
   SRD Tuning Limited shows modest net assets and positive working capital, indicating a baseline ability to meet obligations. However, the significant increase in current liabilities in the latest year compared to prior years raises some caution about short-term liquidity pressures.

2. Key Concerns:

• Sharp rise in current liabilities from £34,503 in 2023 to £103,296 in 2024, largely due to an increase in "Other creditors" (£75,530 in 2024 vs. £2,320 in 2023), which may indicate delayed payments or growing short-term debt.
• Reduction in cash balance from £28,487 in 2023 to £23,121 in 2024 despite growth in current assets and turnover, potentially signaling cash flow management issues.
• Debtors declined significantly from £27,990 in 2023 to £16,182 in 2024, which could impact cash inflows if not replaced by equivalent sales or collections.

3. Positive Indicators:

• Net assets increased steadily from £22,378 in 2021 to £40,175 in 2024 demonstrating retained profits and equity growth.
• Positive net current assets of £32,124 in 2024 indicate working capital remains sufficient to cover short-term liabilities despite the increase in creditors.
• The company has remained compliant with filing deadlines, with no overdue accounts or confirmation statements, suggesting sound regulatory adherence.
• Business appears operationally focused and growing, with an increase in average employees from 5 to 6 and expanded stock levels indicative of scaling operations.

4. Due Diligence Notes:

• Investigate the nature of the large increase in "Other creditors" to assess if these are trade payables, accrued expenses, or possibly related party balances that could affect liquidity or solvency.
• Review cash flow statements and payment terms to determine if the company is experiencing tightening liquidity or delayed collections.
• Confirm the collectability of debtors given the reduction and whether there have been changes in credit policy or customer base.
• Assess operational sustainability given the relatively small share capital (£100) and dependence on possibly short-term financing.
• Verify no director disqualifications or adverse regulatory actions against the director, Mr. Lee Steven Perryman, to rule out governance risks.