Company Number: 13047890

Analysis Date: 2025-07-19 12:43 UTC

1. Risk Rating: LOW
   DRA20 LTD demonstrates a strong liquidity position with cash significantly exceeding current liabilities, positive net current assets, and no overdue filings. The company is small, recently incorporated, and operates in general medical practice, a typically stable sector.

2. Key Concerns:

• Limited Scale and History: Incorporated in late 2020, the company has a short operating history which limits trend analysis and long-term sustainability assessment.
• Single Director and Employee: The company currently has only one director and one employee, which could imply operational risk if key person dependency exists.
• Minimal Share Capital: The nominal share capital of £1.00 suggests limited equity buffer, though this is not uncommon for small private companies.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances (£134,674) comfortably cover current liabilities (£21,518), indicating good short-term financial health.
• Positive Net Assets and Shareholders’ Funds: Net assets increased from £81,621 in 2021 to £113,156 in 2023, reflecting retained earnings and profitability.
• Up-to-date Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Industry Stability: General medical practice activities (SIC 86210) are generally resilient, providing operational stability.

4. Due Diligence Notes:

• Review Profit & Loss Details: As the P&L account is not filed publicly, obtain detailed profitability and revenue trends to assess operational performance.
• Assess Dependency on Director: Investigate the operational role and potential risk related to single director/employee structure.
• Verify Cash Flow Sustainability: Confirm the source and sustainability of cash balances, including any related party transactions or capital injections.
• Examine Client Base and Contractual Commitments: Understanding the client concentration and contract terms would aid in evaluating revenue stability.