CRITICAL SYSTEMS MANAGEMENT LTD

Executive Summary

Critical Systems Management Ltd is a very small private limited company with a solid compliance record and improving net assets. While financial indicators show modest growth and liquidity, the company’s limited scale and dependence on a single director/shareholder concentrate operational risk. Further due diligence on receivables quality and business sustainability is recommended.

CRITICAL SYSTEMS MANAGEMENT LTD - Analysis Report

Company Number: 14007294

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: LOW
   The company shows a positive net asset position with a modest but growing net current asset base. It has filed accounts and confirmation statements on time, indicating good compliance. Its very recent incorporation (2022) and small scale limit extensive historical risk but current data suggests manageable financial stability.

2. Key Concerns:

• Limited Scale: The company operates with only one employee (the director) and very small asset and liability figures, which may limit operational resilience and scalability.
• Dependence on Single Director/Shareholder: Mr. Westley James holds 75-100% ownership and controls all voting rights, concentrating risk in one individual’s management and financial capability.
• Minimal Tangible Assets: With only £131 in net tangible assets, the company lacks substantial physical or financial buffers to absorb operational shocks.

3. Positive Indicators:

• Positive Working Capital: Net current assets increased from £5,540 to £9,367 year-on-year, indicating improved liquidity position.
• Timely Compliance: No overdue filings or accounts, suggesting good governance and regulatory compliance.
• Growing Retained Earnings: Retained earnings increased from £5,651 to £9,373, showing the company is retaining profits rather than incurring losses.

4. Due Diligence Notes:

• Verify the nature and stability of receivables (£13,859) to assess the quality and collectability of debtors.
• Review cash flow statements (not provided) to confirm liquidity beyond balance sheet snapshots.
• Investigate any contingent liabilities or off-balance sheet risks that may not be reflected in the accounts.
• Assess the business model, market position, and revenue streams given the small scale and sole director/shareholder structure.
• Confirm there are no director conduct or disqualification issues with Mr. Westley James, given his central role.