CUSTOMS MANAGER LTD

Executive Summary

Customs Manager Ltd exhibits a robust liquidity and solvency profile for a micro-entity, supported by strong net current assets and consistent growth in net assets since incorporation in 2020. The primary risk lies in the unsecured director loan and the very small operational scale, which warrants further review. Regulatory compliance is current with no overdue filings, indicating sound governance practices to date.

CUSTOMS MANAGER LTD - Analysis Report

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.