STUART BISHOP ARCHITECTS LTD

Executive Summary

Stuart Bishop Architects Ltd is a small architectural practice that maintains positive net assets and complies with filing requirements, indicating operational stability and regulatory compliance. However, liquidity is a concern due to very low cash balances and significant current liabilities, largely driven by director loans and high debtor levels. Further investigation into debtor quality and director financing arrangements is recommended to fully assess short-term financial resilience.

STUART BISHOP ARCHITECTS LTD - Analysis Report

Company Number: SC680454

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   The company is solvent with positive net assets and net current assets; however, liquidity appears constrained with very low cash balances relative to current liabilities, and a significant portion of current assets tied up in debtors. The presence of director loans as short-term liabilities also raises some concerns over operational cash flow.

2. Key Concerns:

• Low Cash Reserves: Cash at bank is just £1,128 against current liabilities of £38,587 as of the latest year-end, indicating potential short-term liquidity stress.
• High Debtors Concentration: Debtors of £46,307 represent the majority of current assets, which may signal collection risk or delayed payments impacting working capital.
• Director Loans: £21,062 owed to directors classified as current liabilities may suggest reliance on directors for financing, which could be a risk if not sustainable or formalized.

3. Positive Indicators:

• Consistent Net Assets: Net assets remain positive and stable (£10,703 in 2023), showing the business maintains equity above liabilities.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance.
• Steady Employee Base and Business Focus: The company maintains a small team (average 2 employees) aligned with its architectural activities, matching its size and scale without signs of operational overextension.

4. Due Diligence Notes:

• Review the ageing and collectability of trade debtors to assess risk of bad debts or cash flow delays.
• Clarify terms and conditions around director loans: repayment schedules, interest, and impact on company liquidity.
• Examine cash flow statements (not provided) to understand operational cash generation and timing of inflows vs outflows.
• Confirm no contingent liabilities or off-balance sheet risks exist that could affect solvency.
• Investigate if there are any customer concentration risks given the relatively high debtor amounts.