Company Number: 13790050

Analysis Date: 2025-07-20 17:06 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant improvement in net assets from a negative £5,708 in 2022 to a positive £21,071 in 2023, indicating a turnaround. However, current liabilities have increased sharply to £394,115 in 2023 from £11,365 in 2022, raising concerns about liquidity and short-term obligations. The presence of a director’s loan account within current liabilities also suggests reliance on related party funding.

2. Key Concerns:

• Liquidity Risk: Current liabilities have increased more than thirtyfold to £394k in 2023, while net current assets remain modest at £25,782, indicating potential cash flow pressure despite a healthy cash balance.
• Concentration of Control and Funding: The sole director and 100% shareholder, Xxxxxx Xxxxxxxxname shown to subscribers, is also a creditor through a director’s loan account (£48,525), which could imply dependence on director funding for operations and liquidity.
• Rapid Growth and Operational Scaling: The company’s employee count tripled from 2 to 6 in one year, and fixed assets increased substantially, possibly reflecting aggressive expansion that may strain resources if not managed prudently.

3. Positive Indicators:

• Improved Solvency: The company moved from negative net assets to positive net assets (£21,071), reflecting improved financial health.
• Strong Cash Position: Cash holdings increased significantly to £341,473, which provides a buffer for meeting short-term obligations and operational needs.
• Timely Compliance: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance and governance.

4. Due Diligence Notes:

• Review the composition and aging profile of current liabilities to assess the timing of creditor payments and any overdue obligations.
• Investigate the nature and terms of the director’s loan account and other related party transactions to understand funding stability.
• Evaluate turnover, profitability trends, and contract pipeline, which are not disclosed here, to assess the sustainability of growth.
• Confirm the accuracy and recoverability of debtors, particularly the £58,000 due after more than one year, to validate asset quality.
• Clarify the business model and customer concentration risk given the SIC code classification (other transportation support activities).