Company Number: 13307738

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: LOW
   Impact Therapy Ltd demonstrates a stable financial position with positive net current assets and shareholders’ funds consistently increasing over the last three years. The company is current with all statutory filings and shows no signs of insolvency or liquidity distress based on the provided data.

2. Key Concerns:

• Minimal Share Capital: The company has a nominal share capital (£100), which may limit financial flexibility or capital raising options if growth or unexpected expenses arise.
• Lack of Employees: The company reports no employees, which could imply operational limitations or reliance on the director alone, potentially impacting scalability and business continuity.
• Limited Financial Disclosure: As a micro-entity, the company files abbreviated accounts, restricting insight into profitability, cash flow, or contingent liabilities, which limits a detailed risk assessment.

3. Positive Indicators:

• Positive Net Current Assets: The net current assets have remained positive and stable (£3,858k in 2024), indicating sufficient short-term liquidity to meet obligations.
• Increasing Shareholders’ Funds: Shareholders’ funds have increased from £3,511k in 2021 to £5,600k in 2024, suggesting retained earnings or capital injections enhancing solvency.
• Compliance and Timeliness: There are no overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Verify the nature of current assets, particularly cash and receivables, to confirm liquidity quality.
• Investigate the company’s revenue streams and profitability since micro-entity accounts do not disclose profit and loss details.
• Confirm if any related party transactions or director loans exist, as these are not detailed in the filings but could impact financial stability.
• Assess business model sustainability given the absence of employees and sole director operation.
• Review any contingent liabilities or off-balance-sheet commitments not captured in micro-entity filings.