COMPUTER EXCHANGE NW LTD

Executive Summary

Computer Exchange NW Ltd demonstrates solid liquidity and growing net assets within a micro-entity framework, supported by consistent compliance and focused operations in computer equipment repair. However, the limited operating history and sole director ownership concentrate risk, warranting further investigation into asset quality and operational resilience before investment. Overall, current indicators suggest a low risk profile with typical early-stage business considerations.

COMPUTER EXCHANGE NW LTD - Analysis Report

Company Number: 13834327

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: LOW
   The company shows a strong net asset position, healthy net current assets, and no overdue filings. It operates within a micro-entity reporting framework, limiting financial complexity but demonstrating prudent management of liabilities versus assets.

2. Key Concerns:

• Limited Financial History: Incorporated in 2022, the company has only two years of financial data, making trend analysis and long-term stability assessment limited.
• Small Scale Operations: With only 2 employees and micro-entity status, operational scale is modest, which may limit resilience to market fluctuations or shocks.
• Director Concentration: One individual (Mr. Christopher Farrer) holds full ownership and control, which may pose governance and succession risks.

3. Positive Indicators:

• Strong Working Capital: Net current assets rose significantly from £24k to £139k year-on-year, indicating improved liquidity.
• Positive Net Assets: Increased shareholder funds from £25.5k to £139.1k in one year, reflecting capital growth or retained earnings accumulation.
• Compliance: All statutory filings including accounts and confirmation statements are up to date, indicating good regulatory adherence.
• Clear Business Focus: SIC code 95110 aligns with computer repair services, a niche with steady demand potential.

4. Due Diligence Notes:

• Verify the composition of current assets, especially cash versus receivables or inventory, to confirm liquidity quality.
• Review the sources of capital increase—whether from retained profits, additional share capital, or loans converted to equity.
• Assess customer concentration and contract stability given the small employee base.
• Conduct director background check for any undisclosed issues despite no formal disqualifications noted.
• Understand the impact of Covid-19 or supply chain issues on recent performance and future outlook.