Company Number: 13713247

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: LOW
   L.K.A Marketing Ltd shows a strong liquidity position with increasing net current assets and net assets over the past three years. The company is current on all filings with no indication of regulatory or compliance issues. The small scale and stable director structure support a low risk profile.

2. Key Concerns:

• Limited employee base (only 1 employee), which may constrain operational scalability and resilience.
• Relatively modest asset base and turnover (implied by exemption from audit), which could limit financial flexibility for growth or downturns.
• Concentration of control and management in a single individual, raising potential governance risks.

3. Positive Indicators:

• Consistent growth in net current assets (from £10.8k in 2021 to £22k in 2024) and net assets (£11.3k to £22.9k).
• Strong cash balance relative to current liabilities (£26.7k cash vs. £8.5k liabilities in 2024), indicating good short-term liquidity.
• No overdue filings or regulatory non-compliance; accounts and confirmation statements are up to date.
• The company operates in a service sector (management consultancy) with low fixed asset requirements, minimizing operational risk.
• Director has maintained continuous appointment since incorporation, reflecting stability.

4. Due Diligence Notes:

• Verify turnover and profitability trends as turnover figures are not explicitly disclosed.
• Assess revenue concentration risk, given one director and likely limited staff.
• Review aging of trade debtors to confirm collectability and quality of receivables.
• Confirm existence and adequacy of insurance and any contingent liabilities not disclosed in filleted accounts.
• Evaluate any contracts or dependencies that could affect ongoing business sustainability.
• Monitor market conditions for management consultancy services in the region for future viability.