Company Number: 14193154

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: LOW
   BUBU INNOVATIONS LTD presents a low risk profile based on the available data. The company is solvent with positive net current assets and shareholders’ funds that have increased significantly year-on-year. There are no overdue filings or indications of financial distress.

2. Key Concerns:

• No employees reported in the latest financial year, which may indicate reliance on directors or contractors and could pose operational risks if key individuals depart.
• The company is classified as a micro-entity with minimal fixed assets and limited financial complexity, which may limit scalability and resilience.
• Given the company's recent incorporation (2022) and limited financial history, there is an inherent risk due to lack of long-term performance data.

3. Positive Indicators:

• Strong improvement in net current assets from £23,236 (2023) to £73,661 (2024) suggests improving liquidity and financial management.
• Shareholders’ funds have increased concurrently, indicating retained earnings or capital injections supporting solvency.
• The company is fully compliant with filing deadlines for both accounts and confirmation statements, reflecting good governance and regulatory adherence.
• Control is clearly defined with two directors/shareholders owning significant shares, providing stable leadership and clear accountability.

4. Due Diligence Notes:

• Investigate the nature of the company’s operations given the SIC code “Other professional, scientific and technical activities not elsewhere classified” to assess business model sustainability and revenue drivers.
• Review contracts or agreements related to staffing or outsourcing since no employees are reported, to ensure operational continuity.
• Confirm the source of increases in current assets and shareholders’ funds—whether through sales revenue, capital injections, or loans—to evaluate quality and sustainability of financial improvements.
• Verify no director disqualifications or adverse conduct records exist for the appointed directors to ensure governance integrity.