AFFINITY ELEMENT LIMITED

Executive Summary

Affinity Element Limited is a recently established small private company exhibiting strong liquidity and growing net assets with full compliance in statutory filings. While limited operating history and concentrated ownership warrant monitoring, the company’s financial position and governance record currently indicate low solvency and liquidity risks. Further review of detailed profitability and client stability is recommended to confirm operational resilience.

AFFINITY ELEMENT LIMITED - Analysis Report

Company Number: 14600825

Analysis Date: 2025-07-29 12:44 UTC

1. Risk Rating: LOW
   Affinity Element Limited demonstrates strong liquidity with cash balances significantly exceeding current liabilities, positive net assets growth, and no overdue filings. The company is solvent and appears financially stable with prudent management given its recent incorporation.

2. Key Concerns:

• Limited operating history: Incorporated in January 2023, the company has a short track record, which inherently limits long-term performance visibility.
• Small scale: As a small company, it may have limited financial and operational resilience compared to larger peers.
• Concentrated control: Two individuals hold substantial shares and voting rights, which may pose governance or succession risks.

3. Positive Indicators:

• Healthy liquidity position: Cash of £60,046 at 2025 year-end comfortably covers current liabilities of £33,993, indicating no immediate liquidity stress.
• Growing net assets: Net assets more than doubled from £19,516 in 2024 to £43,298 in 2025, reflecting retained earnings and positive financial development.
• Compliance: No overdue accounts or confirmation statements, showing good regulatory adherence and corporate governance.
• Clear principal activity: The company operates in scientific consultancy, a professional sector potentially supporting stable revenue streams.

4. Due Diligence Notes:

• Verify revenue and profitability trends through underlying profit and loss data, as profit and loss accounts were not filed in full.
• Assess client concentration and contract stability to evaluate operational sustainability.
• Review director and shareholder backgrounds for any undisclosed risks, although current data shows no disqualifications or adverse records.
• Confirm adequacy of accounting policies and any off-balance sheet liabilities or contingent risks not evident in the filleted accounts.