Company Number: 13231932

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: LOW
   From the available data, From the Basement Ltd demonstrates a solid solvency position with positive net assets and a strong net current asset position that has improved year-on-year. The company maintains compliance with filing deadlines and shows no indication of financial distress or regulatory issues.

2. Key Concerns:

• Limited Scale and Employee Base: The micro-entity status and only two employees limit operational scalability and may constrain business growth or resilience to market shocks.
• Concentration of Control: Ownership and control are concentrated with a single individual holding 75-100% of shares and voting rights, presenting potential governance risk if succession or management issues arise.
• Absence of Profit & Loss Disclosure: The directors have elected not to file profit and loss accounts, which reduces transparency on operational profitability and cash flow trends.

3. Positive Indicators:

• Strong Liquidity Position: Current assets significantly exceed current liabilities, with net current assets increasing substantially from £59,851 in 2024 to £91,845 in 2025, indicating healthy short-term liquidity.
• Growing Net Assets and Shareholders’ Funds: Net assets almost doubled from £66,235 in 2024 to £97,684 in 2025, reflecting retained earnings or capital injection strengthening financial stability.
• Timely Regulatory Compliance: All statutory filings including accounts and confirmation statements are up to date, reducing compliance risk.
• Low Leverage and Modest Fixed Assets: The company's balance sheet shows low fixed assets and limited liabilities, minimizing solvency risk.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the company’s revenue streams and profitability given the absence of P&L details.
• Review cash flow statements or management accounts if available, to confirm liquidity beyond balance sheet snapshots.
• Assess the implications of ownership concentration on governance, including any plans for succession or risk mitigation.
• Understand the strategic plans for scaling the business beyond its current micro-entity status, including potential capital needs or staffing expansion.
• Confirm no contingent liabilities or off-balance sheet risks exist that could impact financial stability.