ALGORITHMI RESEARCH LTD

Executive Summary

Algorithmi Research Ltd is a financially stable micro-entity with positive working capital and compliant regulatory filings, suggesting low immediate financial risk. However, its small scale, single-director governance, and limited financial disclosure warrant further investigation into profitability and operational sustainability before investment. Overall, the company appears solvent and compliant but requires deeper due diligence on business fundamentals.

ALGORITHMI RESEARCH LTD - Analysis Report

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.