Company Number: 13925358

Analysis Date: 2025-07-19 12:15 UTC

1. Risk Rating:
   MEDIUM

Justification: Terry Milner Ltd. is a recently incorporated private limited company (2022) with growing operations as indicated by employee numbers (34 in 2023) and tangible assets acquired. The company exhibits a positive net asset position (£169,787) and net current assets (£137,736), indicating some buffer above short-term liabilities. However, the relatively high current liabilities (£265,250) compared to cash (£172,255) and significant debtors (£230,731) create moderate liquidity risk. The company is still in early stages with limited financial history, which adds uncertainty about operational sustainability.

2. Key Concerns:

• Liquidity Risk: Current liabilities exceed cash on hand by approximately £93k, reliance on debtor collections (£230k) is material to maintaining liquidity. Delays or defaults in receivables could strain cash flow.
• Profitability and Cash Conversion: No detailed profit and loss data is presented; only a tax charge (£47,575) is noted. The absence of comprehensive income information limits assessment of operational profitability and cash generation.
• Concentration and Control: Ownership and voting rights are held 75-100% by a single entity (Terry Milner Holdings Ltd), indicating potential governance and concentration risk for minority investors or external stakeholders.

3. Positive Indicators:

• Compliance and Governance: All statutory filings (accounts and confirmation statements) are up to date with no overdue reports or penalties, suggesting good regulatory compliance.
• Net Asset Growth: Net assets grew from a nominal £100 at incorporation to £169,787 within one year, indicating value creation or capital injection.
• Employee Base: Employment of 34 people within one year of incorporation signals operational scale-up and potential market traction.
• Tangible Assets: Acquisition of motor vehicles and fixtures (£32k net) supports operational capacity and investment in productive assets.

4. Due Diligence Notes:

• Obtain full profit and loss accounts or management accounts to assess profitability trends, margins, and sustainability of earnings.
• Review debtor aging schedule to evaluate quality and collectability of trade and other receivables.
• Investigate nature and terms of other creditors (£123k) to understand timing and risk profile of liabilities.
• Assess cash flow statements or projections to validate liquidity position and working capital management.
• Confirm details of the ultimate controlling shareholder Terry Milner Holdings Ltd to evaluate financial strength and strategic intent.
• Consider background checks on directors for any adverse conduct records or conflicts of interest given the family names and multiple directors appointed simultaneously.