Company Number: 13611482

Analysis Date: 2025-07-29 12:25 UTC

1. Risk Rating: LOW to MEDIUM
   Modus International Ltd demonstrates a solid net asset position and positive working capital in its latest accounts. It is not in liquidation or administration and has filed accounts and confirmation statements on time. However, there is a noticeable decline in net assets and current assets in the most recent year which warrants some caution.

2. Key Concerns:

• Declining Net Assets: Net assets fell from £137,717 in 2023 to £104,189 in 2024, a reduction of approximately 24%, indicating possible profitability or asset impairment issues.
• Reduced Liquidity: Cash decreased significantly from £101,388 to £68,196, and current assets dropped by over £37,000, though net current assets remain positive. This tightening in liquidity could affect short-term operational flexibility.
• Provisions for Liabilities: The company holds provisions of £7,292 in 2024 (down from £12,945), suggesting potential contingent liabilities or risks that may impact future cash flows.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains a healthy working capital position (£73,892 in 2024) with current assets exceeding current liabilities comfortably.
• Timely Filing and Compliance: No overdue filings and confirmation statements are up to date, indicating good regulatory compliance and governance.
• No Audit Exemption Risks: The company qualifies for small company audit exemption and has prepared accounts accordingly, which aligns with its size and complexity.

4. Due Diligence Notes:

• Investigate the reasons behind the decline in net assets and cash balances, including any impairments, losses, or unusual expenses.
• Review the nature and adequacy of provisions for liabilities to understand potential financial risks or contingent obligations.
• Assess operational sustainability given the company employs only 2 staff members on average, and whether the business model is scalable or dependent on key personnel.
• Verify the absence of any director disqualifications or governance issues not evident in the filings.
• Confirm revenue trends and profitability from underlying management accounts or additional disclosures, since profit and loss details were not included.