Company Number: 14567629

Analysis Date: 2025-07-20 15:50 UTC

1. Risk Rating: LOW

Based on the available financial and company data, Flowtec Biotech Ltd exhibits a low risk profile at this early stage. The company is active, compliant with statutory filings, and has positive net current assets with a modest but positive net asset position.

2. Key Concerns:

• Limited Operating History: Incorporated in January 2023, the company has a very short track record, which limits the ability to assess operational stability and financial trends.
• Small Scale and Micro Entity Status: As a micro entity with only four employees, the business may face challenges scaling or absorbing shocks without a broader financial base.
• Modest Net Asset Base: Net assets stand at £16,830, which is low and could constrain the company’s ability to meet unexpected liabilities or invest in growth.

3. Positive Indicators:

• Compliance and Timely Filings: The company has filed accounts and confirmation statements on time with no overdue filings or regulatory issues.
• Positive Net Current Assets: With current assets of £78,420 against current liabilities of £54,820, the company maintains a positive working capital position (£23,600), suggesting short-term liquidity is adequate.
• Clear Ownership and Governance: Three directors with defined roles and shareholders controlling between 25-50% each indicate a balanced control structure without apparent governance red flags.

4. Due Diligence Notes:

• Review Business Model and Revenue Streams: Verify the nature of the company’s scientific and technical consulting activities (SIC 71122) and assess sustainability and revenue generation capacity.
• Examine Cash Flow Details: Since the accounts are unaudited and micro entity based, request internal cash flow statements or forecasts to confirm liquidity beyond the balance sheet snapshot.
• Investigate Related Party Transactions and Director Resignation: Explore reasons behind the resignation of one director within the first year and any related party dealings that could affect governance or financial stability.