Company Number: 12813568

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: MEDIUM
   Cippenham Ltd shows a modest improvement in net current assets and net assets over recent years, indicating some financial recovery. However, the company’s very small share capital and low cash balances relative to current liabilities suggest potential liquidity constraints. The limited operational scale and sole director control also present concentration risks.

2. Key Concerns:

• Liquidity risk is evident from minimal cash (£345) against current liabilities (£8,948) as of the latest accounts, which may pressure short-term obligations.
• The company is very small with only one employee (the director) and minimal share capital (£1), raising concerns about operational resilience and capital adequacy.
• Significant reliance on a single director and PSC (Mr. Zulfiqar Hussain) who owns 75-100% shares and voting rights, which may pose governance and continuity risks.

3. Positive Indicators:

• Net current assets increased from £1,893 in 2022 to £5,522 in 2023, indicating improved working capital management.
• The company is current with all statutory filings, including accounts and confirmation statements, reflecting compliance discipline.
• Stock levels have increased substantially (from £3,250 to £14,125), suggesting potential growth in inventory aligned with sales activity.

4. Due Diligence Notes:

• Investigate the nature and timing of trade and other creditors (£8,948) and assess payment terms and any overdue liabilities.
• Review cash flow statements or management accounts to assess short-term liquidity beyond the snapshot balance sheet data.
• Evaluate business model sustainability given the single employee structure and small capital base, including dependency on the principal director.
• Confirm absence of director disqualifications or regulatory issues related to the controlling director.
• Understand the reasons for the increase in stock and whether it corresponds to sales growth or inventory buildup.