HELP PLEASE - websites contingency planning

  • ng
  • 11/10/08 31/12/20
  • a depositor
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Posted: Tue, 09/06/2009 - 10:12

I am doing some risk analysis and contingency planning for our websites and related systems (notification emails etc.) We are hosted at who have provided very good and professional service. Nonetheless, since we are wholly dependent on them, we have to consider that anything major going wrong there (fire, flood, gas explosion etc) could take our sites off-line. Given that the impact of that would be high, the possibility needs to be considered even though the probability may be small.

Under the current economic climate, quite possibly the most significant risk is that of the company going bust, and whilst I have absolutely no reason to think that might happen, I'm trying to do some checking.

Attached are their abbreviated annual accounts, which are of little help as they are only up to June 2007 and the economy has changed a lot since then as we know only too well! The accounts are unaudited, which ISTR is for companies with turnover under 350k, and show negative net assets of (38,523), not too encouraging as a starting point.

Any further input appreciated. Does anyone have access to a credit checking service? The company number is SC214448.

xtrahost annual accounts june2007.pdf95.46 KB
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Looking at these accounts,

  • Anonymous
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  • Wed, 10/06/2009 - 17:21

Looking at these accounts, the company is (was) clearly dependent on its bank financing. If this was withdrawn then it would have difficulties.
The accounts represent ancient history though, its very hard to make an assessment of private companies based upon the filed accounts. They have 10 months to file the accounts after the period end, and in actual fact abbreviated accounts tell you very little.

Xtraordinary Networks

  • Anonymous
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  • Wed, 10/06/2009 - 16:44

Ng, although the accounts are unaudited at least they are prepared by a firm of Chartered Accountants which should give us some comfort.
The 2007 figures show that they did at least make about £27k of profit, which reduces the profit and loss defecit to £73k
However they did spend £71k on fixed assets - presumably IT kit which meant the long(ish?) term bank loan increased. I can only assume that the bank have agreed to fund their investment in new kit so that they may grow the business.
The fact that they have a net defecit of £38k would be more of a concern if the bank was a current liability - which it isnt.
At their 2007 year end they had lots of cash due from their clients and nothing due to current creditors which gives a little more comfort- if its collectable.

I dont think we will get much on them in terms of a credit rating, but it wouldnt be unreasonable to ask if you could see their 2008 accounts. In fact they should have been filed by now!
Hope that helps - let me know if you get 2008 accounts -happy to review them