SWIFT RIVER LLP

Executive Summary

Swift River LLP shows signs of financial distress with negative net assets and significant working capital deficits, raising concerns over solvency and liquidity. While compliance and asset stability are positive, the company’s ability to meet short-term obligations appears strained, warranting detailed cash flow and asset valuation analysis. Investors should approach with caution and seek further financial disclosures.

SWIFT RIVER LLP - Analysis Report

Company Number: OC431127

Analysis Date: 2025-07-29 20:18 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and significant net current liabilities, indicating solvency and liquidity risks. The negative members' loan balance further suggests financial strain.

2. Key Concerns:

• Negative Net Assets: As of 31 March 2023, net assets are negative (£-5,662), a deterioration from prior years' positive net assets.
• Severe Working Capital Deficit: Net current assets are deeply negative (£-451,632), implying inability to cover short-term liabilities with current assets.
• Dependence on Members’ Loans: The accounts show a negative loan and other debts due to members within one year (£-5,662), indicating members may have advanced funds, but the negative figure suggests repayment obligations or accounting treatment that warrants clarification.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, indicating regulatory compliance and administrative discipline.
• Fixed assets have remained stable (~£484,592), suggesting some tangible asset base which could provide security.
• The average employee count is stable at 5, reflecting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and security of fixed assets to assess their realizable value in liquidity terms.
• Clarify the reasons behind the negative members’ loan balance and any related party transactions or guarantees.
• Review cash flow statements and debtor aging (not provided) to evaluate operational cash generation and short-term liquidity pressures.
• Assess the company’s business model and revenue streams to determine sustainability given the financial stress indicated.
• Confirm the background and financial capacity of members who may be providing financial support to the LLP.