Company Number: 13105710

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: LOW
   Pikzel Ltd demonstrates a sound financial position with positive net assets and net current assets in the latest reported year. There are no overdue filings, and the company remains active with no indications of insolvency or liquidation.

2. Key Concerns:

• Decline in Net Assets and Cash Reserves: Net assets and cash have decreased significantly from £125,348 (2022) to £68,403 (2023) and £157,177 to £70,091 respectively, which may indicate reduced liquidity or operational cash flow challenges.
• Limited Scale and Resources: As a small private limited company with only two employees and modest fixed assets, the business may face scalability constraints and vulnerability to market fluctuations in the video production industry.
• Concentration of Control: Significant control is held by one individual (Mr Craig Terrence Davies, 25-50% ownership and voting rights), which could pose governance risks if there is lack of independent oversight.

3. Positive Indicators:

• Strong Current Asset Position: Despite the decline, current assets exceed current liabilities by a healthy margin (£64,724 net current assets in 2023), supporting short-term solvency.
• No Overdue Filings or Compliance Issues: Company accounts and confirmation statements are up to date with no reported penalties or compliance flags.
• Consistent Workforce and Industry Focus: The company maintains a stable number of employees and operates in a defined niche (video production activities), which can support operational continuity.

4. Due Diligence Notes:

• Investigate Causes of Cash and Asset Reduction: Review detailed cash flow statements and management commentary to understand reasons behind the sharp reduction in cash and net assets.
• Assess Revenue Trends and Profitability: The abridged accounts do not provide turnover or profit figures; acquiring detailed P&L accounts would clarify operational sustainability.
• Review Governance Practices: Given the concentrated ownership and directorship, assess board structure, decision-making processes, and potential related party transactions.
• Examine Fixed Asset Additions and Depreciation: Understand capital expenditure and asset utilization given the increase in fixed asset cost but a significant depreciation charge in 2023.