Company Number: 14860090

Analysis Date: 2025-07-29 20:26 UTC

1. Risk Rating: MEDIUM

Justification: PROTEAN RECRUITMENT LTD shows a significant increase in cash and net current assets in the latest financial year, indicating improved liquidity. However, the substantial rise in current liabilities, especially taxation and social security creditors, raises concerns about short-term obligations. The company is newly incorporated (2023) with limited operating history, and its single director holds full control, which may present governance risks.

2. Key Concerns:

• Sharp increase in current liabilities from £20k (2024) to £177k (2025), predominantly taxation and social security (£97k), suggests potential cash flow strain or delayed payments to HMRC.
• Decline in trade debtors from £21.6k (2024) to zero (2025) may indicate collection issues or a change in business model worth verifying.
• Single director structure with 100% ownership concentrates control and decision-making, which may elevate operational and governance risks.

3. Positive Indicators:

• Strong cash position (£269k) as at 31 May 2025 supports immediate liquidity to meet short-term liabilities.
• Net current assets improved substantially to £95k in 2025 from £13k in 2024, indicating positive working capital.
• Profit and loss reserves have increased significantly from £20k to £99.8k, implying profitability or capital injections.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased taxation and social security liabilities to assess if these are accruals or overdue payments.
• Clarify the reason for the absence of trade debtors in 2025 compared to the prior year.
• Review contracts and revenue recognition policies given the company's SIC code (employment placement services) and recent turnover trends.
• Assess the director’s background and any related party transactions given the sole control.
• Confirm no outstanding regulatory or compliance issues given the company is newly incorporated but filings are up to date.