BLUE SKIES PROJECTS LTD

Executive Summary

Blue Skies Projects Ltd shows improving financial stability with a positive net asset position and no compliance issues, but remains a micro-entity with limited scale and some historical liquidity volatility. Investors should carefully examine cash flow dynamics and operational sustainability given the company's niche activities and sole director structure. Overall, the company presents a moderate risk profile requiring further due diligence on liquidity and governance.

BLUE SKIES PROJECTS LTD - Analysis Report

Company Number: 12612972

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: MEDIUM
   Justification: Blue Skies Projects Ltd demonstrates an improving solvency position with positive net current assets and growing shareholders' funds in the latest financial year. However, the small scale of operations, minimal share capital, and historical periods of negative working capital suggest some liquidity risk and operational vulnerability typical of a micro-entity in a niche construction sector.

2. Key Concerns:

• Liquidity Fluctuations: The company moved from negative net current assets in prior years (2020-2023) to a positive position (£3,165) in 2024. This volatility indicates potential cash flow management challenges that need monitoring.
• Limited Financial Scale: With share capital of only £1 and average headcount of one employee, the company's capacity to absorb financial shocks or scale operations is limited.
• Lack of Audit and Limited Disclosures: As a micro-entity exempt from audit, financial statements provide limited assurance and less transparency to investors. This restricts thorough risk assessment beyond balance sheet figures.

3. Positive Indicators:

• Improved Financial Position in 2024: Total assets less current liabilities increased to £14,457 from £4,499 in 2023, reflecting better asset management or reduced short-term liabilities.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Single Controlling Shareholder with Relevant Experience: Mr Robin Brylewski owns 75-100% of shares and is the sole director, which can enable swift decision-making and focused management.

4. Due Diligence Notes:

• Review the detailed cash flow statements and creditor ageing to assess short-term liquidity risks and creditor relationships.
• Investigate the nature of fixed assets and whether they are readily realizable or specialized equipment.
• Understand the business model and revenue streams in the niche construction SIC codes (43999, 41202, 41100) for sustainability and growth prospects.
• Ascertain if the single director has any history of insolvency or disqualification and evaluate governance safeguards given the sole control structure.
• Confirm any off-balance-sheet liabilities or contingent risks not visible from micro-entity accounts.