FIRST SPACE 4 FINANCE HUB LTD

Executive Summary

FIRST SPACE 4 FINANCE HUB LTD is a small, micro-entity company limited by guarantee with very limited financial resources and low turnover. The company meets statutory filing requirements on time and reports a small surplus, but its extremely low net assets and minimal working capital create medium risk regarding financial resilience and operational sustainability. Further investigation into cash flows, cost structure, and funding arrangements is recommended to better assess ongoing viability.

FIRST SPACE 4 FINANCE HUB LTD - Analysis Report

Company Number: 12763871

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and filing accounts and returns on time, which supports compliance and operational continuity. However, the very low asset base (£155 net assets) and turnover (~£25k) with minimal net surplus indicate limited financial resilience. The company’s micro-entity status and limited scale increase vulnerability to cash flow disruptions and operational risks.

2. Key Concerns:

• Low Net Assets and Working Capital: Net current assets of only £155 as of March 2024 is extremely low, providing minimal buffer for liabilities or unexpected expenses.
• Minimal Profitability: While there is a small surplus (£84 in 2024), margins are razor thin given turnover and staff costs, suggesting limited capacity to absorb shocks or invest in growth.
• Small Scale and Limited Financial Data: As a micro entity limited by guarantee, the company has minimal capital and limited publicly disclosed financials, making comprehensive risk assessment difficult and increasing uncertainty about operational sustainability.

3. Positive Indicators:

• Timely Compliance: No overdue filings or accounts; latest accounts and confirmation statements were submitted on time, evidencing good governance practices.
• Stable or Slightly Increasing Turnover: Turnover has increased slightly from £23.8k in 2023 to £25.4k in 2024, indicating some business continuity or modest growth.
• Positive Net Surplus: The company generated a small surplus for the year, demonstrating at least break-even operational management despite low revenue.

4. Due Diligence Notes:

• Investigate the nature of income and costs, particularly the staff costs which represent a large proportion of turnover, to understand operational efficiency and sustainability.
• Clarify the company’s cash flow position beyond the balance sheet figures, including any off-balance sheet liabilities or commitments.
• Confirm the business model and sources of funding given the limited equity and minimal asset base, to assess ongoing viability.
• Review any related party transactions or guarantees given the company structure (limited by guarantee, no share capital).
• Verify absence of director disqualifications or regulatory issues beyond Companies House filings.