BLUESKIES SIMULATORS LTD

Executive Summary

Blueskies Simulators Ltd shows a stable financial position with strong liquidity and growing net assets, supported by prudent regulatory compliance. The company’s reliance on director funding and limited staffing are points for further investigation but do not currently raise immediate solvency or liquidity concerns. Overall, the risk profile is low based on available data.

BLUESKIES SIMULATORS LTD - Analysis Report

Company Number: 12726704

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position with healthy net current assets and no overdue filings. Its liquidity profile is solid, with cash reserves covering current liabilities comfortably. There is no indication of regulatory non-compliance or operational distress.

2. Key Concerns:

• Reliance on Director Loan Account: The director’s loan account balance remains significant (£15,246 in 2024), signaling reliance on director financing which may pose a risk if the director’s support is withdrawn.
• Deferred Income and Tax Liabilities: There is deferred income (£2,123) and corporation tax liabilities (£5,735) that require ongoing management to ensure timely settlement.
• Limited Employee Base: The company operates with a single employee (the director), which may limit operational scalability and resilience.

3. Positive Indicators:

• Strong Liquidity: Cash of £68,936 and net current assets of £83,101 in 2024 indicate the company is well positioned to meet short-term obligations.
• Growing Net Assets: Net assets have grown from £489 in 2020 to £96,240 in 2024, showing robust retained earnings and capital growth.
• Timely Compliance: Accounts and confirmation statements are filed on time, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review the nature and sustainability of revenue streams given the SIC code (amusement and recreation activities) and verify contract terms to assess future cash flows.
• Investigate the director’s loan account terms and repayment plans to assess financial risk related to director funding.
• Examine customer debtor quality and aged analysis to confirm collectability of the £41,324 debtors figure.
• Confirm that deferred tax balances are accurately calculated and that there are no hidden tax risks.
• Understand the business model’s operational dependencies given the single employee and evaluate plans for growth or risk mitigation.