Company Number: 14415688

Analysis Date: 2025-07-29 16:17 UTC

1. Risk Rating: LOW
   JP-1 YGGDRASIL LIMITED exhibits a strong financial position with substantial net current assets, a high level of shareholders' funds, and no overdue filings. The company maintains a healthy liquidity profile with significant cash and investments relative to liabilities, indicating low solvency and liquidity risk.

2. Key Concerns:

• Concentration of Control: The single director and 100% controlling shareholder structure (Jack Priestman) presents governance concentration risk, potentially limiting oversight.
• Lack of Audit and Limited Disclosure: As a small company exemption applies, no audit or income statement was filed, restricting detailed insight into profitability and operational cash flow.
• Capital Commitments: The company has significant contracted investments in private equity funds (USD 576,000 and EUR 281,250), which may impact cash flow and liquidity depending on timing and performance of these investments.

3. Positive Indicators:

• Strong Solvency and Liquidity: Net current assets of approximately £1.08 million exceed current liabilities by a wide margin, and cash balances remain robust at £283,002.
• Stable Shareholders' Funds: Equity capital stands at nearly £2 million, reflecting a stable and well-capitalized balance sheet.
• On-Time Compliance: All statutory filings including accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Investment Asset Base: Substantial fixed asset investments and current asset investments totaling over £1.6 million support financial stability and potential income streams.

4. Due Diligence Notes:

• Review Director and Shareholder Background: Confirm the director’s business history and any potential related party transactions given single-person control.
• Examine Investment Portfolio Details: Assess the nature, risk profile, and liquidity of fixed and current asset investments, especially private equity commitments.
• Request Profit & Loss and Cash Flow Data: Although small company exemption applies, seek internal management accounts or other disclosures to understand operational performance and cash flow dynamics.
• Verify Director’s Advances and Related Party Transactions: Clarify the status and terms of the director’s overdraft and any other balances or guarantees.
• Assess Impact of Currency Commitments: Given capital commitments are denominated in USD and EUR, evaluate foreign exchange risk and hedging policy.