COMPUTHERAPY LIMITED

Executive Summary

COMPUTHERAPY LIMITED has demonstrated a financial recovery from initial negative net assets to profitability and positive working capital within a short period. While current financial indicators are encouraging, the company's small scale, historic losses, and concentrated control warrant cautious monitoring. Further investigation into cash flows and governance will help ensure ongoing operational stability.

COMPUTHERAPY LIMITED - Analysis Report

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.