Company Number: 12767049

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

1. Risk Rating: LOW
   FDC SYSTEMS LTD demonstrates strong financial metrics for a micro-entity, with healthy net current assets and consistent growth in net assets over the last five years. The company is current with its statutory filings and shows no indication of liquidity or solvency issues.

2. Key Concerns:

• Reliance on a single director and employee may present operational risk if key personnel become unavailable.
• Significant increase in fixed assets in the latest year (£225k from £36k) warrants review to confirm the nature and valuation of these assets.
• Limited turnover and profit data restrict assessment of operational profitability and cash flow stability.

3. Positive Indicators:

• Positive net current assets of £213k and net assets of £438k as at 31 July 2024 indicate strong solvency and liquidity positions.
• No overdue filings or compliance issues reported, suggesting good governance and regulatory adherence.
• Steady growth in net assets from £99k in 2020 to £438k in 2024 reflects a sustainable increase in company value.
• Shareholder equity is fully positive, with no indication of accumulated losses.

4. Due Diligence Notes:

• Verify details and valuation methodology of the large increase in fixed assets in 2024 to assess asset quality and risk of impairment.
• Obtain detailed profit and loss and cash flow statements to evaluate operational performance and cash generation capacity.
• Review contracts or arrangements that support the company's business sustainability considering it operates with a single employee.
• Confirm that the director’s conduct record is clear of any disqualifications or legal issues.
• Assess the company's revenue streams and client base to understand business diversification and risk exposure.