NOUKAL ADVISORY LIMITED

Executive Summary

Noukal Advisory Limited exhibits a strong liquidity position with cash well above current liabilities and positive net assets, indicating low solvency risk. The company complies with filing requirements and maintains operational stability despite its small scale and minimal share capital. Further due diligence on profitability and dividend policy is advised to ensure sustainable financial health.

NOUKAL ADVISORY LIMITED - Analysis Report

Company Number: 12403279

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

1. Risk Rating: LOW
   Noukal Advisory Limited demonstrates a solid liquidity position with cash holdings significantly exceeding current liabilities. The company maintains positive net current assets and shareholders' funds, indicating sound solvency and the ability to meet short-term and long-term obligations.

2. Key Concerns:

• Modest Share Capital: The nominal share capital of £10 is minimal, which may limit financial flexibility and capital buffer in adverse scenarios.
• Small Scale Operations: The company has only one employee (the director), which could present operational risks including dependency on a single individual and limited capacity for scaling.
• Deficit and Dividend Payments: The company recorded a small deficit (£1,103) during the latest financial year and paid dividends (£1,000), which may warrant review to ensure sustainable dividend policy in light of earnings.

3. Positive Indicators:

• Strong Liquidity: Cash of £48,997 versus current liabilities of £2,103 provides a comfortable liquidity coverage ratio, mitigating immediate cash flow risks.
• Consistent Net Current Assets: The net current assets remain positive and stable over recent years, reflecting prudent working capital management.
• Up-to-date Filings: Both accounts and confirmation statements are filed on time with no overdue status, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Profitability Trends: Obtain detailed income statements (not provided) to assess profitability trends beyond the noted deficit, including revenue sources and expense dynamics.
• Dividend Policy Rationale: Investigate the rationale and sustainability of dividend payments against operating results and cash flow.
• Operational Dependency: Evaluate the risks associated with single-director management and potential contingency or succession plans.
• Related Party Transactions: Review director’s current account balances and any related party transactions for potential conflicts or financial exposure.
• Business Model Viability: Confirm the nature and scale of financial management activities (SIC 70221) and client base to assess operational sustainability.

Executive Summary:
Noukal Advisory Limited maintains a strong liquidity position and positive net assets, supporting a low solvency risk profile. The company is compliant with filing obligations and demonstrates prudent working capital management, though the small scale and modest share capital present operational and capital structure considerations. Further examination of profitability and dividend sustainability is recommended to confirm ongoing financial stability.