Company Number: 12410861

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: LOW
   Justification: Northshore IO Limited demonstrates solid net current assets and positive net assets with increasing tangible fixed assets and cash reserves. The company is current with filings and shows no signs of insolvency or regulatory non-compliance.

2. Key Concerns:

   1. Significant reduction in debtors from £553k in 2022 to £280k in 2023 may indicate collection issues or declining sales that require further investigation.
   2. Deferred tax provisions have increased notably from £2.8k to £12.8k, which could reflect timing differences or tax uncertainties.
   3. Lack of filed income statement and profit/loss data limits full assessment of profitability and operational performance.

3. Positive Indicators:

   1. Strong liquidity position with cash increasing from £66k to £193k in 2023 and net current assets remaining robust at £352k.
   2. Positive net assets of £406k and shareholders' funds show sound equity backing.
   3. Up-to-date statutory filings including accounts and confirmation statements, reducing regulatory risk.
   4. Increasing investment in computer equipment and tangible fixed assets, suggesting ongoing operational capacity and commitment to growth.
   5. Active employee share scheme indicates engagement and alignment with staff.

4. Due Diligence Notes:

   1. Obtain and review management accounts or income statement to assess revenue trends, margins, and profitability.
   2. Investigate the reason for the substantial decrease in trade debtors and evaluate collection policies and credit risk management.
   3. Clarify the nature and composition of deferred tax liabilities to understand future tax obligations.
   4. Review related party transactions and governance given parent company control by Northshore IO Inc (US-based).
   5. Confirm no undisclosed liabilities or contingent risks not reflected in the small company accounts.