STINSONS & FAMILY LTD

Executive Summary

Stinsons & Family Ltd, a newly incorporated private funeral services company, currently faces high financial risk due to significant liquidity shortfalls and a net liability position in its first year. While investment in tangible assets and compliance with filing requirements are positive signs, the company’s solvency challenges and concentrated control warrant close scrutiny before investment. Further investigation into creditor terms and financial plans is essential to assess operational sustainability.

STINSONS & FAMILY LTD - Analysis Report

Company Number: 14849136

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by negative net current assets of £-123,714 and net liabilities of £-5,754 within its first financial year. The large creditor balances relative to current assets signal an inability to meet short-term obligations without additional financing.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£132,111) greatly exceed current assets (£8,397), indicating immediate liquidity pressure.
• Net Liability Position: Total liabilities surpass total assets, resulting in negative shareholders’ funds, which raises solvency concerns.
• Concentration of Control: A single director and majority shareholder controls 75-100% shareholding and voting rights, potentially limiting governance oversight and increasing operational risk.

3. Positive Indicators:

• Fixed Asset Investment: Tangible assets of £175,000 indicate capital deployment into operational infrastructure, which could support future revenue generation.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence.
• Industry Sector: Operating in funeral and related activities (SIC 96030) may offer steady demand due to the nature of the services.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial creditor balances, especially “Other creditors” (£96,823), to assess repayment risk and creditor relationships.
• Review the company’s cash flow forecasts and business plan to understand how it intends to address its working capital deficit and move towards profitability.
• Assess the director’s financial support capacity and any related party transactions given the director’s full ownership and control.
• Confirm the status and usability of the tangible fixed assets in operational capacity and whether they are encumbered (e.g., hire purchase contracts).
• Verify the accuracy and completeness of financial statements as they are unaudited and the income statement was not filed.