Company Number: 15047245

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: LOW
   Emmerson Group Ltd exhibits a stable financial position for a micro-entity with positive net current assets and net assets increasing substantially over the reported periods. The absence of overdue filings and the current active status further support a low risk rating.

2. Key Concerns:

• Limited scale and track record: Incorporated in August 2023, the company has a short operating history which restricts visibility on long-term operational stability and financial performance.
• Relatively high current liabilities in 2025 (£57,505) compared to prior years could indicate increased short-term obligations that require monitoring.
• Ownership concentration: Emmerson Investments holds 75-100% control, with the two directors holding minority shares. This concentration may raise governance concerns for some investors regarding influence and decision-making transparency.

3. Positive Indicators:

• Positive net current assets (£11,281) and net assets (£8,761) as of March 2025 indicate the company can meet its short-term obligations and has a growing equity base.
• No overdue statutory filings or accounts, indicating good regulatory compliance and corporate governance practices to date.
• The company operates in essential service sectors (cleaning and plumbing) which tend to have steady demand, supporting operational sustainability at a small scale.
• Small employee base (average 2 employees) and micro-entity reporting reduce complexity and potential operational risks.

4. Due Diligence Notes:

• Review detailed cash flow and profit & loss information when available to assess true liquidity and operational profitability, as only balance sheet snapshots are provided.
• Investigate the nature and terms of the increased current liabilities in the 2025 accounts to understand any short-term liquidity pressures or creditor concentration.
• Assess the governance framework given the ownership and control concentration by Emmerson Investments and the directors’ roles and qualifications.
• Verify the independence and credibility of the directors for ongoing business sustainability, particularly given their stated occupations outside the core business sectors.
• Monitor for any future changes in filing status or financial health as the company expands beyond micro thresholds.