DEEP LEVEL LTD

Executive Summary

Deep Level Ltd is a micro private limited company with strong liquidity and no compliance issues, presenting a low immediate risk profile. However, the notable decrease in net assets in the latest financial year and limited financial disclosure suggest the need for further investigation to fully understand operational sustainability. Concentrated ownership and control also warrant consideration in governance risk assessment.

DEEP LEVEL LTD - Analysis Report

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.