Company Number: 13441249

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: LOW
   Algorithmi Research Ltd demonstrates strong liquidity and solvency indicators typical for a micro-entity with modest operations. The company maintains positive net current assets and shareholders' funds, with no overdue filings or liquidation status, reducing immediate financial risk.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with a single employee and minimal fixed assets (£799 as of 2024), the company’s operational scale is very small, which could limit growth potential and resilience.
• Dependency on a Single Director: The company is managed by one director, which may pose governance and continuity risks if that individual becomes unavailable or incapacitated.
• Lack of Audit and Detailed Financial Disclosure: Exemption from audit and limited financial disclosures restrict deeper insight into operational profitability and cash flow stability.

3. Positive Indicators:

• Consistent Positive Working Capital: Net current assets increased from £890 in 2023 to £1,168 in 2024, indicating improved liquidity and ability to meet short-term obligations.
• No Overdue Filings or Compliance Issues: Both accounts and confirmation statements are up to date, showing good regulatory compliance and governance practices.
• Stable Shareholders’ Funds Growth: Shareholders’ funds increased from £1,830 in 2023 to £1,967 in 2024, reflecting a stable equity base and likely retained earnings or capital injection.

4. Due Diligence Notes:

• Review Profitability and Revenue Streams: Financial statements show balance sheet strength but provide no income statement data; assessing profitability and revenue sustainability is necessary.
• Assess Director and Management Background: Given sole directorship, perform background checks and evaluate director’s experience and capacity to drive business forward.
• Understand Business Model and Market Position: SIC code 85590 (Other education not elsewhere classified) is broad; clarify specific activities, client base, and growth strategy for operational sustainability.