STRAKER INDEPENDENT FINANCIAL PLANNING LTD

Executive Summary

Straker Independent Financial Planning Ltd demonstrates an improving financial position with increased net assets and maintained compliance. Nevertheless, tight liquidity, reliance on director loans, and small scale operation warrant careful monitoring. Further due diligence on cash flows and operational sustainability is recommended for an informed investment decision.

STRAKER INDEPENDENT FINANCIAL PLANNING LTD - Analysis Report

Company Number: 14187954

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: MEDIUM
   The company shows recent financial improvement with modest net assets and positive working capital in the latest year; however, prior years reflected negative net current assets and low equity, indicating some historical liquidity and solvency stress that warrants attention.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities are substantial (£23,193) relative to current assets (£24,102) resulting in a very narrow net current asset margin of £909, which is low for absorbing shocks.
• Reliance on Director Loans: The director’s loan account fluctuated significantly from a negative balance to a positive balance, with large advances and repayments (£63,858 advanced and £74,012 repaid in the year), suggesting reliance on director financing that may impact financial stability.
• Small Scale Operations: With only one employee (the director) and limited fixed assets (~£3,000), the company may face operational sustainability challenges and limited resource capacity for growth or weathering downturns.

3. Positive Indicators:

• Improved Financial Position: Net assets increased from £101 in 2023 to £3,954 in 2024, indicating successful capital injection or profitability improvements.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good compliance and governance practices.
• Clear Ownership and Control: The sole director and majority shareholder, Mr. Stephen Straker, holds 75-100% shares and voting rights, providing transparent governance and decision-making clarity.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment plans and potential impact on cash flow.
• Assess turnover and profitability trends beyond balance sheet figures, since turnover and profit data are not provided here.
• Review contractual obligations and contingent liabilities that might affect liquidity not disclosed in the current accounts.
• Confirm the sustainability of operations given the single-person structure and limited fixed assets.