ELKERA SOLUTIONS LTD

Executive Summary

ELKERA SOLUTIONS LTD demonstrates a low risk profile based on timely filings and positive net assets despite its micro scale. The main concerns relate to its very small financial base and a recent decline in current assets, which warrant closer scrutiny of liquidity and operational sustainability. Overall, the company appears compliant and stable but limited in financial strength.

ELKERA SOLUTIONS LTD - Analysis Report

Company Number: 13213491

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: LOW

Justification: ELKERA SOLUTIONS LTD is a micro-entity with modest but positive net assets and net current assets across the last reported years. The company has filed accounts and confirmation statements on time, indicating regulatory compliance. The small scale of operations and stable net asset progression support a low risk rating at this stage.

2. Key Concerns:

• Extremely limited current asset base and very small net assets (only £300 as of 2025 year-end), which could constrain operational flexibility.
• Noticeable decrease of current assets from £4,439 in 2024 to £1,060 in 2025, potentially indicating liquidity tightening.
• Very small scale and limited financial resources (micro-entity status, only 2 employees) may limit resilience to adverse business conditions.

3. Positive Indicators:

• Consistent regulatory compliance with no overdue filings or penalties, demonstrating good governance.
• Positive net current assets in all reported years, suggesting the company can meet short-term liabilities.
• The director has maintained continuous appointment since incorporation, implying stable leadership.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in current assets from 2024 to 2025 to assess liquidity risk.
• Review cash flow statements or bank statements (if available) to confirm operational cash flow sufficiency.
• Evaluate business model sustainability given the micro size and limited financial buffers.
• Confirm no contingent liabilities or off-balance sheet risks beyond those disclosed.
• Understand the nature of the business activities under SIC 82990 and client base to assess revenue stability.