SUMMIX PLANNING LIMITED

Executive Summary

Summix Planning Limited shows growth in net assets and working capital but faces liquidity challenges due to increased current liabilities, especially amounts repayable on demand to group companies. The company remains compliant with filing requirements and is supported by directors’ confidence in going concern status. Further investigation into related party debts and cash flow management is recommended to fully assess operational sustainability and refinancing risks.

SUMMIX PLANNING LIMITED - Analysis Report

Company Number: 13099645

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: MEDIUM
   The company exhibits moderate solvency and liquidity positions supported by positive net current assets and growing shareholders’ funds. However, a material increase in current liabilities, especially amounts owed to group undertakings repayable on demand without interest, introduces some refinancing and liquidity risk. The company is relatively young and small with limited equity capital.

2. Key Concerns:

• Sharp increase in trade and related party debtors alongside a significant rise in current liabilities, particularly £212k owed to group undertakings repayable on demand, which may pressure short-term liquidity.
• Cash balance declined materially from £26k in 2022 to £6.7k in 2023 despite growth in debtors, suggesting potential cash flow timing issues or collection risk.
• Operating lease commitments totaling approximately £23.5k over the next five years represent fixed overheads that must be serviced regardless of cash flow fluctuations.

3. Positive Indicators:

• Net current assets increased from £49k to £91k year-on-year, demonstrating improved working capital management despite increased liabilities.
• Shareholders’ funds nearly doubled from £51.9k to £95.1k, indicating retained earnings accumulation and strengthening equity base.
• Directors have adopted going concern basis with a reasonable expectation of meeting obligations for at least 12 months, and no overdue statutory filings or audit exemptions noted, suggesting regulatory compliance is currently maintained.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to group undertakings, including repayment plans and group financial health, to assess refinancing risk.
• Review debtor aging and credit risk controls given large increase in trade and other debtors, and material mismatch with cash holdings.
• Assess lease agreements and flexibility in commitments to understand fixed cost burden.
• Confirm management plans for cash flow management and capital requirements given the company’s growth trajectory and increased liabilities.
• Verify directors' backgrounds and any potential related party transactions beyond those disclosed, given director turnover in December 2024.