Company Number: 13174522

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: MEDIUM
   COMPUTHERAPY LIMITED shows improving financial health with a positive net asset position and profitability in the latest accounting period. However, the company has a very short trading history since incorporation in 2021 and previously carried significant negative net assets and current liabilities. The micro-entity scale and concentration of control present moderate risks.

2. Key Concerns:

• Historical losses and large current liabilities in the first two years (2021 and 2022) indicate initial undercapitalization or cash flow stress.
• Very limited equity (share capital of £2) and reliance on one employee may constrain operational scalability and financial flexibility.
• Significant ownership and control by a single PSC (25-50%) and one active director potentially raises governance and succession risks.

3. Positive Indicators:

• Recent turnaround with profitability (£9,121 in 2025) and positive net current assets (£11,261) indicating improved liquidity and operational performance.
• No overdue filings or compliance issues, suggesting good regulatory adherence since incorporation.
• The company operates in IT consultancy and support (SIC 62090, 62020), sectors with generally favorable growth prospects.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging schedules to confirm sustainable liquidity and absence of hidden liabilities.
• Assess contracts or recurring revenues to validate turnover growth and profitability sustainability beyond micro-entity scale.
• Confirm background and reputation of the controlling director and PSC, including any undisclosed related party transactions or potential conflicts of interest.
• Investigate reasons for early financial distress and steps taken to restore solvency, including any external financing or capital injections.
• Verify the adequacy of insurance, legal compliance, and intellectual property protections given the IT service nature.