Company Number: 13476621

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: MEDIUM
   Justification: The company is relatively new (incorporated in 2021) and classified as a small private limited company. Its latest financial statements show net current liabilities and a declining net asset base, which signals some solvency stress. However, there are no overdue filings or signs of formal insolvency proceedings. The company benefits from group affiliation, which may provide some operational support.

2. Key Concerns:

• Negative net current assets: The company’s current liabilities (£25,199) exceed current assets (£23,571) by £1,628 as of 31 December 2023, indicating potential liquidity constraints in meeting short-term obligations.
• Declining net assets: Net assets have decreased from £4,497 in 2022 to £2,129 in 2023, suggesting erosion of shareholder value and potential ongoing losses or asset impairments.
• Lack of employees and reliance on group support: The company employs no staff directly and relies on group undertakings for administration, which could indicate limited operational independence and potential risks if group support were withdrawn.

3. Positive Indicators:

• No overdue statutory filings: Both accounts and confirmation statements are filed on time, showing regulatory compliance and good governance.
• Unqualified audit report: The auditor’s report for the 2023 accounts was unqualified, providing assurance on the financial statements’ accuracy.
• Backing by a parent company: Mikhail Hotels And Leisure Holdings Limited controls 75-100% of shares and voting rights, suggesting potential financial and operational support from the group.

4. Due Diligence Notes:

• Investigate the cause of the net current liability position and confirm the company’s ability to generate positive cash flow or receive group financial support to cover short-term liabilities.
• Review the group’s consolidated financial position to understand the parent company’s capacity and willingness to support Total Security North West Limited if needed.
• Confirm the nature of transactions and balances with related parties to assess dependency and any potential risks arising from intercompany exposures.
• Evaluate the company’s business model and revenue streams since there are no employees, to verify sustainability and operational viability.