Company Number: 15075302

Analysis Date: 2025-07-19 12:34 UTC

1. Risk Rating: MEDIUM

The company, Blade Services Ltd, shows a modest balance sheet with positive net assets and net current assets, indicating initial financial stability. However, it is a newly incorporated company (2023), with limited operating history and a relatively tight liquidity position. The presence of director loans as current liabilities is a potential concern for liquidity and solvency risk if those loans are callable on short notice.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£42,186) are substantial relative to current assets (£61,153), largely driven by director loans (£37,400). This reliance on director funding may pose liquidity risk if these loans are demanded for repayment or not renewed.
• Limited Operating History: Incorporated in August 2023 with only one year of financial data, the company’s operational sustainability and revenue generation capacity remain unproven.
• Related Party Debt: The large director loan liability suggests dependency on insider funding, which may affect governance and financial stability if terms or intentions change.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Net assets of £60,454 and net current assets of £18,967 show the company is solvent at the balance sheet date.
• Compliance and Filing: All statutory accounts and confirmation statements are up to date, with no overdue filings, indicating good regulatory compliance.
• Clear Ownership and Control Structure: Directors and persons with significant control are identified and transparent, with no disqualifications or adverse records noted.

4. Due Diligence Notes:

• Verify terms and conditions of director loans including repayment schedules, interest rates, and any covenants.
• Investigate revenue streams and contract stability given the company operates in private security (SIC 80100), a sector sensitive to client retention and regulatory compliance.
• Review management and governance arrangements given the close relationship between directors and financing sources.
• Confirm that the company’s fixed assets (plant, machinery, equipment) are adequately insured and valued correctly.
• Evaluate future cash flow projections and working capital management plans to ensure the company can meet short-term obligations without additional director funding.