Company Number: 13900667

Analysis Date: 2025-07-29 12:25 UTC

1. Risk Rating: LOW
   Deep Level Ltd demonstrates a solid net asset position with positive net current assets and no overdue filings. The company is micro-sized with a single director who is also the majority shareholder, indicating straightforward governance and control. Financially, the balance sheet shows healthy working capital and no apparent liquidity issues.

2. Key Concerns:

• Declining Asset Base: The net assets decreased from £31,209 in 2024 to £12,733 in 2025, which warrants monitoring to understand the cause and sustainability.
• Limited Financial Disclosure: As a micro-entity, only filleted accounts are filed, which limits insight into profit and loss, cash flow, and detailed operational performance.
• Single Director and Shareholder: While common in small companies, this concentration of control may pose governance risks and potential continuity concerns if the director’s involvement changes.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, indicating good regulatory compliance.
• Strong Liquidity Position: Current assets far exceed current liabilities, providing comfortable short-term solvency.
• Stable Operational Scale: Consistent number of employees (1) and no material increase in liabilities suggest stable operational scale and manageable cost structure.

4. Due Diligence Notes:

• Investigate reasons behind significant reduction in net assets and current assets from 2024 to 2025, including any extraordinary expenses or asset disposals.
• Request management accounts or additional financial details beyond filleted accounts to assess profitability and cash flow trends.
• Assess the dependence on the single director for business continuity and whether there are succession plans or risk mitigation strategies.
• Confirm whether the company’s consultancy activity (SIC 70229) is generating sustainable revenue streams and client diversification.