NECTAR FLOWS LTD

Executive Summary

NECTAR FLOWS LTD is a recently established micro-entity with a positive net asset base and no regulatory compliance issues, indicating low immediate financial risk. However, limited operational history and lack of employees suggest that further evaluation of business viability and revenue generation is necessary for a comprehensive risk assessment.

NECTAR FLOWS LTD - Analysis Report

Company Number: 14368536

Analysis Date: 2025-07-29 13:33 UTC

1. Risk Rating: LOW
   NECTAR FLOWS LTD demonstrates a solid net asset position with positive working capital, no overdue filings, and no indications of financial distress. The company’s micro-entity status and recent incorporation limit the financial history available but current figures suggest sound solvency and liquidity.

2. Key Concerns:

• Limited Operating History: Incorporated in 2022, the company has a very short track record, making it difficult to assess long-term operational sustainability.
• No Employees: The company reported zero employees which could indicate reliance on directors or contractors; operational scalability and continuity should be evaluated.
• Micro-Entity Reporting: The simplified reporting framework means limited financial detail is available, restricting in-depth financial analysis and risk assessment.

3. Positive Indicators:

• Strong Working Capital: Net current assets increased from £28,831 to £39,711 year-over-year, indicating good short-term liquidity.
• Positive Net Assets and Shareholders’ Funds: Net assets rose from £23,116 to £39,711, showing retained earnings or capital injection and overall financial strengthening.
• Compliance and Governance: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns, evidencing good regulatory compliance.
• Directors’ Transparency: PSC register is complete with clear identification of controllers, both directors are disclosed with no adverse records mentioned.

4. Due Diligence Notes:

• Revenue and Profitability Data: Obtain detailed profit and loss accounts or management accounts to assess operational performance and cash flow dynamics.
• Business Model and Revenue Streams: Investigate the nature of the “Other sports activities” classification and how the company generates income without employees.
• Director Backgrounds and Related Party Transactions: Evaluate the business experience of the directors (both yoga teachers) and any transactions with related parties or directors that might impact financial stability.
• Future Business Plans: Review strategic plans or forecasts to understand growth prospects and capital requirements.