FIRESCAPE RISK ADVISORY LTD

Executive Summary

Firescape Risk Advisory Ltd is a recently established fire safety consultancy demonstrating initial financial stability with positive net assets and timely statutory compliance. The company’s small scale and limited trading history introduce some operational and liquidity considerations, but no immediate solvency risks are evident. Continued monitoring of debtor quality, liabilities, and business development is recommended to validate ongoing financial health.

FIRESCAPE RISK ADVISORY LTD - Analysis Report

Company Number: 15237655

Analysis Date: 2025-07-29 12:40 UTC

1. Risk Rating: LOW

The company, Firescape Risk Advisory Ltd, is newly incorporated (October 2023) and has filed timely accounts and confirmation statements with no overdue filings. Its latest financials (period ending March 2025) show positive net current assets (£3,023) and net assets (£4,222), with a modest cash balance (£5,252). The sole director and 100% owner is Michael Costello, showing a straightforward governance structure. There are no indications of insolvency or operational distress at this early stage.

2. Key Concerns:

• Limited operating history: The company has been trading for just over 1 year and 5 months, which restricts the ability to assess longer-term financial stability or market position.
• Concentration of control and personnel: With only one director and one employee, the business faces operational risk if key personnel are unavailable or leave.
• Modest cash reserves: While current assets exceed liabilities, the cash balance is relatively low, potentially constraining short-term liquidity if unexpected expenses arise.

3. Positive Indicators:

• Timely compliance: No overdue filings or regulatory issues are present, indicating good corporate governance.
• Positive working capital: Net current assets are positive, showing the company can meet short-term obligations.
• Profitability and going concern: The director confirms the company made a profit in the period and prepared accounts on a going concern basis.
• Clear business focus: The company operates within fire service activities with a professional website and clear service offering.

4. Due Diligence Notes:

• Verify the aging and collectability of trade debtors (£17,982) to assess liquidity risk.
• Review the nature of current liabilities, particularly taxation and social security (£11,867), to ensure no imminent payment issues.
• Assess the business plan and pipeline given the limited staff and short trading period to understand growth prospects and operational sustainability.
• Confirm the absence of any director disqualifications or adverse conduct records for Michael Costello via official records.
• Monitor future filings for continuity of compliance and financial performance trends.