BLUE ELK SOFTWARE SOLUTIONS LTD

Executive Summary

Blue Elk Software Solutions Ltd is a newly formed micro-entity with a positive and improving balance sheet and no regulatory filing issues. While its limited operating history and single-person management present some risk, current liquidity and governance structures appear sound. Further investigation into underlying revenue stability and operational resilience is recommended before making investment decisions.

BLUE ELK SOFTWARE SOLUTIONS LTD - Analysis Report

Company Number: 14384363

Analysis Date: 2025-07-20 14:27 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets growth and positive net assets over its two-year history. It remains up to date on filings, has no overdue accounts or returns, and operates within micro-entity reporting thresholds. There are no indications of financial distress or regulatory non-compliance.

2. Key Concerns:

• Limited operating history: Incorporated in late 2022, the company has only two full years of financial data, restricting trend analysis and long-term viability assessment.
• Single director and employee: Operational dependency on one individual may pose continuity and key person risk.
• Lack of audit and limited disclosure: As a micro-entity, accounts are unaudited with minimal narrative, limiting insight into operational performance, cash flow, and contingent liabilities.

3. Positive Indicators:

• Improving financial position: Net current assets more than doubled from £38k to £83k, indicating strengthening liquidity and working capital.
• No overdue statutory filings: The company is current with Companies House requirements, reducing regulatory risk.
• Sole shareholder/director alignment: The controlling director owns 75-100% shares with full voting rights and appointment powers, streamlining governance and decision-making.

4. Due Diligence Notes:

• Verify cash flow sufficiency and revenue streams supporting asset growth.
• Assess contracts, client base, and pipeline to gauge operational sustainability beyond the micro-entity snapshot.
• Review director background for any undisclosed issues given single-person control.
• Explore potential related party transactions or loans not visible in micro-entity accounts.
• Confirm absence of contingent liabilities or off-balance-sheet obligations.