STRUCTUREIT HOLDINGS LIMITED

Executive Summary

StructureIT Holdings Limited is a recently incorporated private holding company exhibiting compliance with filing requirements and positive net assets. However, liquidity concerns arise due to a significant director loan repayable on demand and large amounts owed by group undertakings without fixed repayment terms. Investors should further investigate related party exposures and operational cash flows to better assess financial stability and business sustainability.

STRUCTUREIT HOLDINGS LIMITED - Analysis Report

Company Number: 14314570

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: MEDIUM

The company shows positive net assets and has no overdue filings, indicating compliance and some financial stability. However, the balance sheet reveals a significant increase in debtors owed by group undertakings alongside a large director loan classified as a current liability, which raises concerns regarding liquidity and reliance on related parties. The small share capital and relatively low net assets limit the financial buffer available to absorb potential shocks.

2. Key Concerns:

• Liquidity Risk: The current liabilities have increased sharply to £104,118 in 2024 from £2,554 in 2023, mainly due to a £100,000 interest-free loan from the director repayable on demand. This could pose cash flow strain if the loan is called in unexpectedly.
• Related Party Exposure: Debtors include £110,194 owed by a group undertaking with no fixed repayment date and no interest, creating uncertainty about the timing and certainty of cash inflows.
• Profit and Loss Volatility: The company shows large profit figures offset by equally large dividend payments, resulting in a declining retained profit balance. This pattern may affect reinvestment and operational cash flow sustainability.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements timely, indicating good regulatory compliance.
• Going Concern Assertion: Directors state the company has adequate resources to meet working capital needs for at least 12 months, supported by the absence of audit requirements and small company regime adoption.
• Active Corporate Secretary and Stable Governance: The presence of a corporate secretary and no reported director disqualifications suggest governance controls are in place.

4. Due Diligence Notes:

• Obtain details on the operational activities and revenue streams of both StructureIT Holdings Limited and related group undertakings to assess business sustainability and debtor collectability.
• Review the terms and conditions of the director's loan and other related party transactions to evaluate potential financial risk and conflicts of interest.
• Analyze cash flow statements or management accounts if available to better understand liquidity trends and working capital management.
• Investigate any contingent liabilities or off-balance sheet arrangements not disclosed in the accounts.