TRANSITION SUPPORT AND ACCOMMODATION LTD

Executive Summary

Transition Support And Accommodation Ltd is a newly established private limited company with a modest equity base and positive net current assets, indicating initial financial stability. However, the significant concentration in trade debtors and absence of recorded employees require further scrutiny to confirm operational sustainability and liquidity. There are no compliance issues or overdue filings, but due diligence on cash flow and debtor quality is recommended to fully assess risk.

TRANSITION SUPPORT AND ACCOMMODATION LTD - Analysis Report

Company Number: 15055407

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: LOW to MEDIUM
   The company is newly incorporated (Aug 2023) with no audit requirement due to small size, positive net current assets, and no overdue filings. However, limited trading history and reliance on debtors for current assets introduce some uncertainty.

2. Key Concerns:

• Debtor Concentration and Realisability: Debtors represent approximately 82% of current assets (£89,723 of £108,938). The ability to collect these receivables promptly is critical to liquidity.
• No Employees Recorded: The financial statements report zero average employees including directors, which may indicate limited operational activity or outsourcing, raising questions on operational capacity and sustainability.
• Dividend Payment Despite Short History: The payment of a £5,000 dividend within the first reporting period could impact cash reserves and is unusual for a start-up, potentially stressing liquidity.

3. Positive Indicators:

• Strong Equity Position: Net assets stand at £59,703 with shareholders' funds nearly equal, indicating no significant liabilities beyond current creditors.
• Current Liabilities Covered by Current Assets: Net current assets are positive (£59,703), suggesting the company can meet short-term obligations.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statement are filed on time with no penalties or compliance flags.

4. Due Diligence Notes:

• Verify the age and collectability of trade debtors to assess liquidity risk.
• Clarify the business model and operational structure given zero employees, including reliance on contractors or third-party service providers.
• Review cash flow statements or projections to understand dividend payment impact and ongoing liquidity.
• Confirm absence of director disqualifications or regulatory issues for the sole director and major shareholder.
• Investigate the nature of creditors and any director loan account transactions.