Company Number: 14386681

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: LOW
   Calco Accounting Ltd demonstrates a solid solvency position with positive net assets and shareholders' funds increasing significantly over two years. There are no overdue filings, and the company appears compliant with statutory requirements. The micro-entity status limits financial disclosure but the available data indicates financial stability.

2. Key Concerns:

• Tight Working Capital: The net current assets have dropped sharply from £13,032 in 2023 to £1,028 in 2024, indicating reduced liquidity buffers that could stress short-term cash flow.
• Rapid Asset Growth: Fixed assets increased markedly from £2,149 to £61,441 in one year; the nature and financing of these assets should be clarified to ensure they are productive and not over-leveraged.
• Single Director and PSC: The company is controlled entirely by one director and shareholder (Sean David Powell), which concentrates governance risk and may impact operational stability or continuity if key personnel issues arise.

3. Positive Indicators:

• Strong Equity Growth: Shareholders’ funds grew from £3,731 (2022) to £62,469 (2024), suggesting retained earnings or capital injections supporting solvency.
• On-Time Compliance: Both accounts and confirmation statement filings are current, showing good regulatory discipline.
• Operating in a Stable Sector: Providing accounting and auditing activities (SIC 69201) is a generally steady business with consistent demand.

4. Due Diligence Notes:

• Confirm the composition and valuation basis of the large fixed assets recorded in 2024 to rule out overstatement or illiquid assets.
• Review cash flow statements or bank reconciliations if available to better assess liquidity beyond balance sheet snapshots.
• Understand the company’s business model, client base, and revenue trends given the micro-entity status and limited disclosures.
• Assess the implications of single-person control on governance and succession planning.