Company Number: 12994125

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: LOW
   Justification: Customs Manager Ltd demonstrates strong net current assets relative to current liabilities, indicating good short-term liquidity. The company holds substantial net assets with no overdue filings or signs of financial distress. The presence of a director loan is noted but does not immediately impair solvency given the overall asset position.

2. Key Concerns:

• Director Loan Exposure: The company has an unsecured, interest-free loan to the director of £97,069, repayable on demand. This related-party transaction could pose a risk if the director demands repayment or if it affects cash flow.
• Minimal Operational Scale: With only one employee (the director) and micro-entity filing status, the business may have limited operational capacity and resilience.
• Limited Historical Financial Data: Incorporated in 2020, with only a few years of accounts, making trend analysis and forecasting more uncertain.

3. Positive Indicators:

• Strong Liquidity Position: Net current assets of £247,284 against current liabilities of £19,068 as of November 2023, indicating ample working capital.
• Consistent Growth in Net Assets: Net assets increased from £194,309 in 2020 to £247,591 in 2023, showing positive retained earnings or capital contributions.
• Up-to-date Compliance: No overdue accounts or confirmation statements, reflecting good regulatory adherence.
• Clear Corporate Governance: Single director with no disqualifications noted, simplifying governance oversight.

4. Due Diligence Notes:

• Review the nature and purpose of the director loan, including repayment terms and impact on cash flows.
• Understand revenue streams and client base to assess the sustainability of the management consultancy business model.
• Verify no contingent liabilities or off-balance-sheet risks exist that could affect solvency.
• Confirm absence of any regulatory investigations or disputes not reflected in filings.
• Assess the impact of limited staffing on business continuity and growth prospects.