ASTROPOL LIMITED

Risk Rating: LOW — The company demonstrates a consistently strengthening balance sheet over a ten-year period, positive net assets, a comfortable current ratio, and a cash position that covers a meaningful proportion of short-term creditors. Statutory filings are current and there are no insolvency proceedings. The rating is constrained by the absence of a filed profit and loss account, which limits assessment of earnings quality.

Key Concerns

1. Limited earnings visibility: The accounts are unaudited, abridged, and filleted; the profit and loss account has not been delivered. Investors cannot verify turnover, margins, or operating cash generation from the available data.
2. Working capital composition: Trade debtors of £1.83 million exceed the cash balance of £566,000 by a factor of more than three. A slowdown in collections could pressure liquidity despite the strong headline cash position.
3. Ownership and governance opacity: The only person with significant control is a corporate entity, Astropol Holding Limited, holding more than 75% of shares and voting rights, so the ultimate beneficial owners are not visible in this dataset. The external accountants share a surname with a current director, which warrants a review of related-party disclosures.

Positive Indicators

• Net assets have grown from approximately £1.41 million in 2016 to £2.51 million in 2025, with shareholders’ funds positive throughout the period.
• Cash at bank increased from £252,000 in 2024 to £566,000 in 2025, providing a buffer against short-term obligations.
• Current assets of £3.35 million exceed current liabilities of £1.40 million by approximately £1.95 million, a current ratio of roughly 2.4:1.
• Long-term creditors are modest at £37,000, and the company has operated for over 30 years without entering insolvency proceedings.
• Accounts and confirmation statement filings are up to date, with no overdue items.

Due Diligence Notes

1. Request the full profit and loss account and cash flow statement to assess revenue trends, profitability, and operating cash conversion.
2. Obtain an aged debtor analysis and credit control policy to evaluate the £1.83 million debtor balance relative to available cash.
3. Identify the ultimate beneficial owners of Astropol Holding Limited, the corporate PSC holding more than 75% of the company.
4. Review related-party transaction disclosures, particularly any fees paid to the external accountants given the shared surname with a current director, and confirm compliance with disclosure requirements.
5. Examine the terms of hire purchase contracts and the £197,000 provisions for liabilities to understand any contingent or long-term obligations.
6. Confirm whether any shareholder or creditor has requested an audit under Section 476 of the Companies Act 2006, notwithstanding the audit exemption claimed under Section 477.