Company Number: 14075038

Analysis Date: 2025-07-19 12:05 UTC

1. Risk Rating: LOW
   Justification: Compliant Payroll Limited shows positive net assets increasing from £5,463 in 2023 to £13,482 in 2024, indicating growth in equity. The company holds a strong cash position (£121,357) relative to current liabilities (£149,477), leading to a positive net current asset position (£13,482). It is current on all statutory filings with no overdue accounts or confirmation statements. These factors suggest a low risk of insolvency or liquidity issues at this stage.

2. Key Concerns:

• Modest net asset base: Though positive and improving, net assets remain relatively small, which could limit resilience to unexpected financial pressures.
• Concentration of control: 100% ownership and directorship by a single individual (Mr. Adam Paul Silver) may expose the company to governance risks and dependency on one person’s management.
• Limited financial history: Incorporated in 2022 with only two years of financial data, making trend analysis and long-term sustainability assessment constrained.

3. Positive Indicators:

• Strong cash balance relative to liabilities, supporting liquidity and operational flexibility.
• Net current assets are positive and have improved year-on-year, showing effective working capital management.
• Up-to-date compliance with filing deadlines and no indication of regulatory concerns or penalties.
• Clear accounting policies and small company exemption used appropriately, indicating compliance with applicable reporting standards.

4. Due Diligence Notes:

• Review turnover, profit and loss details, and cash flow statements (not filed publicly) to better understand operational sustainability and revenue trends.
• Confirm extent and nature of trade debtors (£43,491) and creditors (£149,477) to assess working capital cycle and potential credit risk.
• Investigate business model robustness given the industry classification (SIC 82990 – other business support services) and competitive environment.
• Evaluate dependence on the sole director and owner for continuity and risk mitigation plans in case of unforeseen absence or departure.
• Verify if any contingent liabilities or off-balance sheet risks exist that are not captured in the limited accounts.