Company Number: 14111377

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: LOW

Justification: Dragon Sky Limited is a recently incorporated micro-entity with small but positive net assets and net current assets, indicating basic solvency. The company is compliant with filing deadlines, shows no overdue accounts or confirmation statements, and has a single shareholder controlling 75-100% of shares and voting rights. While turnover data is only available for one year (£81,916), and the company employs no staff currently, the financials do not raise immediate solvency or liquidity concerns.

2. Key Concerns:

• Very small scale of operations with minimal fixed assets (£1,237) and limited net assets (£1,108), which may limit financial flexibility.
• Employee headcount has dropped to zero, potentially signaling operational downsizing or reliance on contractors, which could affect business sustainability.
• The director and shareholder structure shows a change in directors since incorporation with only one current director named in the latest accounts (Mr J Stainton), while the sole significant controller (Mr Darren Symes) resigned as director in 2022, suggesting possible governance or operational shifts needing clarification.

3. Positive Indicators:

• Timely and up-to-date filing of statutory accounts and confirmation statements, indicating good regulatory compliance.
• Positive net current assets and shareholders’ funds, confirming the company’s ability to cover short-term liabilities.
• Clear ownership structure with a single controlling person, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Verify the current operational model given the zero employee count and the departure of the initial director who was also the sole PSC.
• Assess the company’s revenue trends beyond the one year of turnover data available to understand business sustainability.
• Confirm the identity and role of the current director(s) and evaluate any impact of governance changes on company operations.