THE QUARTZ WORKTOP COMPANY LIMITED

Executive Summary

The Quartz Worktop Company Limited appears financially stable with improving net assets and liquidity. No overdue filings or immediate solvency issues are evident. Key focus areas include their significant lease obligations, provisions, and governance structure due to concentrated ownership. Further examination of provisions and lease commitments is recommended to confirm ongoing operational stability.

THE QUARTZ WORKTOP COMPANY LIMITED - Analysis Report

Company Number: 12527551

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: LOW
   The Quartz Worktop Company Limited demonstrates solid financial position and compliance with filing requirements. The company shows improving net assets and working capital, with no overdue filings or signs of financial distress.

2. Key Concerns:

• Lease Obligations: Significant finance lease liabilities both short term (£70k) and long term (£155k) may strain cash flows and require monitoring.
• Provisions: The presence of substantial provisions (£98k) suggests contingent liabilities or risks that could impact future results. Details on these provisions should be clarified.
• Concentration of Control: One individual controls 50-75% of shares and voting rights, which could pose governance risks if succession or conflicts arise.

3. Positive Indicators:

• Strong Net Asset Growth: Net assets nearly doubled from £223k to £422k in the latest year, indicating profitable operations and balance sheet strengthening.
• Positive Working Capital: Net current assets increased to £105k, showing adequate short-term liquidity to meet obligations.
• Timely Filings: All accounts and confirmation statements are up to date with no overdue submissions, reflecting good compliance and governance.
• Growing Cash Reserves: Cash increased substantially from £85k to £146k, providing a healthy liquidity buffer.
• Increasing Tangible Fixed Assets: Investment in tangible assets grew by about £220k, supporting operational capacity expansion.

4. Due Diligence Notes:

• Review the nature and expected timing of the provisions to assess potential impact on financial stability.
• Assess lease terms, payment schedules, and potential refinancing risks associated with the finance leases.
• Evaluate debtor quality and aging to ensure collectability of trade receivables, given the increase in debtors.
• Confirm the operational profitability and cash flow generation trends beyond balance sheet data.
• Investigate the concentration of control and governance safeguards in place to mitigate risks associated with a dominant shareholder.
• Validate turnover and profit figures as these are not disclosed here, to understand operational performance fully.