Company Number: 12836951

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: LOW
   Datasage Limited demonstrates solid financial health with strong net current assets and growing shareholders’ funds. The company maintains a substantial cash balance relative to its current liabilities, indicating good liquidity. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• High director’s loan balance (£179,893) as debtor: While interest-free and repayable on demand, this represents a significant receivable from a related party, which could pose a risk if the director’s ability or willingness to repay becomes compromised.
• Concentration of control: The sole director and 75-100% controlling shareholder is Mr. Charles Raja Victor, which may increase governance risk due to lack of diversity in management and control.
• Limited employee base: The company reports only 1 employee for the latest year, which may constrain operational capacity and scalability.

3. Positive Indicators:

• Strong liquidity position with cash of £53,385 and net current assets of £350,142, comfortably covering current liabilities of £56,364.
• Consistent growth in net assets and shareholders’ funds from £21,019 in 2020 to £352,759 in 2024, indicating profitability and retained earnings accumulation.
• Up-to-date statutory filings with no overdue accounts or confirmation statements, reflecting good compliance and governance standards.
• Operating in stable and growing sectors (data processing, IT consultancy) that support ongoing business sustainability.

4. Due Diligence Notes:

• Investigate the nature and management of the director’s loan account: repayment terms, potential risks of non-recovery, and impact on cash flows.
• Review revenue streams and client diversification to assess operational sustainability beyond sole director involvement.
• Confirm whether the low employee headcount aligns with business model or indicates reliance on subcontractors/outsourcing.
• Examine dividend policy and retained earnings usage to ensure reinvestment supports growth.
• Verify the accuracy of investments (£137,200) recorded under current asset investments and their liquidity.