NEEDLE MASTER LTD

Executive Summary

Needle Master Ltd is a small, micro-entity artistic creation business with a stable and improving financial position, evidenced by positive net assets and timely compliance with filings. However, the company’s limited equity base and modest liquidity buffer warrant attention to cash flow management and operational viability. Overall, current indicators suggest a low risk profile but ongoing monitoring of operational performance is advisable.

NEEDLE MASTER LTD - Analysis Report

Company Number: SC682197

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: LOW

The company exhibits a stable micro-entity profile with positive net current assets and net assets that have grown over the last three years. The absence of overdue filings and the maintenance of accounts and confirmation statements on time support a low regulatory risk.

2. Key Concerns:

• Thin Equity Base: Shareholders’ funds amount to only £793 as of the latest accounts, which is very modest and may limit financial flexibility.
• Limited Operating Scale: Operating as a micro-entity with a single employee (the director) restricts operational capacity and may affect sustainability under growth or stress.
• Modest Liquidity Cushion: While net current assets are positive (£3,193), the buffer above current liabilities is relatively small, which could pose liquidity challenges if unexpected expenses arise.

3. Positive Indicators:

• Consistent Growth in Net Assets: Net assets have increased from £252 in 2022 and 2023 to £793 in 2024, indicating incremental financial improvement.
• Timely Compliance: All filing deadlines for accounts and confirmation statements have been met with no overdue notices, reflecting good governance practices.
• Positive Working Capital: Current assets exceed current liabilities each year, demonstrating the company can meet short-term obligations.

4. Due Diligence Notes:

• Review Cash Flow Trends: Examine detailed cash flow statements or bank statements to verify operational cash generation and assess liquidity beyond balance sheet snapshots.
• Assess Revenue and Profitability: Since the company is classified under SIC 90030 (Artistic creation) and has minimal fixed assets, understanding revenue streams and profit margins is critical for operational sustainability.
• Director Background Check: Confirm no adverse director conduct records and assess the director’s capacity to manage and grow the business given the single-employee structure.