THE PRIMUS GROUP LIMITED

Executive Summary

THE PRIMUS GROUP LIMITED demonstrates ongoing liquidity and solvency challenges, evidenced by negative net current assets and shareholders’ funds over multiple years. While regulatory compliance is maintained, financial sustainability appears weak given the micro-entity status and negative equity position. Further due diligence is recommended to clarify cash flow adequacy and operational viability before considering investment.

THE PRIMUS GROUP LIMITED - Analysis Report

Company Number: 13251703

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and net liabilities over multiple years, signaling solvency and liquidity challenges. The absence of positive equity and ongoing working capital deficits raise concerns about the company’s ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Negative Net Current Assets: The company has had net current liabilities over the past four financial years, increasing from -£261 to -£2,591, indicating deteriorating liquidity.
• Negative Shareholders’ Funds/Net Assets: Shareholder equity is negative at -£2,591 as of the latest accounts, implying that liabilities exceed assets and the company is technically insolvent on a balance sheet basis.
• Micro Entity Filing with No Audit: While filing under micro-entity exemptions reduces compliance burden, it also limits financial transparency and detailed disclosures, which restricts investor insight into operational performance and risk factors.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with Companies House filing requirements and regulatory deadlines.
• Stable Number of Employees: The company maintained an average of 3 employees over the last two reported years, suggesting operational continuity at a small scale.
• Experienced Directors: Presence of directors with professional backgrounds (accountant and nurses) may provide operational and financial oversight capability.

4. Due Diligence Notes:

• Review management accounts and cash flow forecasts to assess short-term liquidity beyond year-end snapshots.
• Investigate reasons for persistent negative equity and whether there are plans or recent investments to recapitalize or improve financial health.
• Confirm any contingent liabilities or off-balance-sheet risks that could exacerbate solvency concerns.
• Assess the operational model and revenue generation capacity given the micro size and industry (residential nursing care).
• Examine related party transactions or director loans that might affect financial stability.
• Evaluate whether the company has access to external credit facilities or funding sources.