Company Number: 12530706

Analysis Date: 2025-07-29 17:10 UTC

1. Risk Rating: LOW
   AFRALOCUM LIMITED demonstrates a low risk profile based on the latest available financial data. The company holds positive net current assets, no overdue filings, and appears well-capitalized relative to its current liabilities. Its operational scale and financial footprint are consistent with a small private limited company in early growth stages.

2. Key Concerns:

• Limited scale and operating history: Incorporated in 2020, the company has a short financial track record with minimal turnover data disclosed, which limits historical performance assessment.
• Concentration of control: The sole director and 100% owner is the same individual, which could pose governance risks if not mitigated by appropriate controls.
• Absence of turnover and profit data: The accounts do not include an income statement or turnover figures, restricting insights into operational profitability and cash flow generation.

3. Positive Indicators:

• Positive net current assets position (£2,799 as at 31 March 2024) indicating the company has sufficient short-term resources to cover its current liabilities (£657).
• No overdue statutory filings (accounts and confirmation statement up to date), evidencing compliance with regulatory requirements.
• The company is exempt from audit under small companies regime, aligning with its small size and simplifying compliance.
• Retained earnings have increased from zero to £2,798, suggesting accumulated profits or capital contributions over time.

4. Due Diligence Notes:

• Request detailed management accounts or audited financial statements if available to assess revenue, profitability, and cash flow trends.
• Understand the nature of the debtor balance (£2,005), its collectability, and whether it represents trade receivables or intercompany balances.
• Evaluate the company's business model and customer base in the "Other human health activities" sector to assess sustainability and growth prospects.
• Review director background and any related party transactions given the single-person ownership structure.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that might impact liquidity or solvency.
• Investigate the cause for the significant increase in net current assets and retained earnings in the latest year, as prior years showed minimal activity.