CYBERHOMES LTD

Risk Rating: LOW Justification: CYBERHOMES LTD demonstrates a strong and improving financial trajectory, with net assets growing from £21,583 in 2018 to £251,611 in 2025. The company maintains a healthy liquidity position, with current assets comfortably exceeding current liabilities. Furthermore, the company has a 20-year operational history, a stable employee count, and a fully compliant regulatory filing record.

Key Concerns * Minimal Share Capital: The company has only £2 in issued share capital. While retained earnings have built up a solid equity buffer, the nominal share capital offers no initial investment resilience. * Limited Financial Transparency: As a micro-entity, the company files abbreviated accounts. This obscures vital operational metrics such as revenue, profit margins, and the specific composition of current assets (e.g., how much is cash versus trade debtors). * Concentration of Fixed Assets: Fixed assets represent approximately 30% of total assets (£168,521 of £554,208). Depending on the nature of these assets (which is unclear from the balance sheet alone), their actual realizable value in a distress scenario could be uncertain.

Positive Indicators * Strong Liquidity Position: Net current assets stand at £153,195, with a current ratio of approximately 1.65 (£385,687 / £232,492). This indicates the company can comfortably meet its short-term obligations. * Consistent Equity Growth: The company has demonstrated a sustained period of profitability, evidenced by the steady year-over-year increase in shareholders' funds over the past seven years. * Regulatory Compliance and Stability: The company is active, filings are up to date (with the latest accounts approved in September 2025), and it has maintained a consistent workforce of 9 employees over the past two years. The leadership appears stable, with two PSCs holding equal 25-50% stakes.

Due Diligence Notes * Asset Composition: Investigate the breakdown of current assets to determine the proportion of cash versus trade debtors. High debtors could indicate slow collection cycles, which could strain cash flow despite the healthy current ratio. * Creditor Profile: Examine the nature of the £70,105 in creditors falling due after more than year. It is important to understand if this represents director loans, bank debt, or deferred income, as this impacts the long-term solvency risk profile. * Profitability Margins: Request internal management accounts to assess actual trading margins, revenue stability, and cash conversion cycles, which are hidden by the micro-entity filing regime.