SUNDOWN GROUP LIMITED

Executive Summary

Sundown Group Limited maintains a low-risk profile with positive working capital and no overdue regulatory filings. However, investor attention is warranted regarding the company’s reliance on group debtors and recent reduction in net assets. The company appears stable as a holding entity but requires further inquiry into its operational cash flows and related party exposures.

SUNDOWN GROUP LIMITED - Analysis Report

Company Number: 13438455

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position with positive net current assets, no current liabilities at the latest year-end, and timely filing of accounts and confirmation statements. The small scale and exemption from audit are consistent with a low-risk micro/small entity profile.

2. Key Concerns:

• Decreasing total assets and net current assets in 2024 compared to prior years indicate a reduction in financial resources.
• Concentration of debtors solely from group undertakings suggests dependency on related parties for receivables and cash flow.
• Very low share capital (£1.00 called up) may limit the company’s solvency buffer in case of unexpected liabilities.

3. Positive Indicators:

• No overdue filings or compliance issues reported; regulatory compliance appears sound.
• Positive net current assets (£52,180 as of 2024) and no current liabilities indicate the company can meet short-term obligations.
• The company is active with multiple directors and a clear ownership structure, including a majority shareholder corporate entity and individual PSCs.

4. Due Diligence Notes:

• Investigate the nature and collectability of the debtors owed by group undertakings to assess liquidity risks.
• Review the reasons behind the reduction in total assets and retained earnings from 2023 to 2024.
• Confirm whether the company’s operational activities generate cash flow or if it is primarily a holding entity with limited trading.
• Assess related party transactions and dependency on group companies for financial stability.
• Verify the roles and backgrounds of directors appointed in 2025 as these appointments post-date the latest accounts.