RADIO5 LIMITED

Executive Summary

Radio5 Limited is an active private IT consultancy company with a small but positive net asset base. However, the sharp decline in working capital and shareholders’ funds over the last year, along with reliance on director advances, elevates its financial risk profile to medium. Continued monitoring of liquidity and operational performance is recommended to ensure sustainability.

RADIO5 LIMITED - Analysis Report

Company Number: 14358599

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: MEDIUM

The company shows modest net current assets and shareholders' funds of £853 at the latest year-end, a significant decline from £9,329 the prior year. While still positive, the substantial reduction in working capital and equity indicates tightening financial resources. The company is very small and newly incorporated (since 2022), which naturally carries elevated risk compared to established firms.

2. Key Concerns:

• Sharp decline in net current assets and shareholders’ funds from £9,329 to £853 within one year, suggesting deteriorating financial position.
• Current liabilities remain material at £6,317 relative to cash balances (£4,181), indicating potential liquidity constraints to meet short-term obligations.
• Director’s advances of £2,976 at year-end represent a reliance on director financing, which could indicate cash flow stress or insufficient external funding.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statement, showing regulatory compliance and good governance.
• Positive net current assets and shareholders’ funds, albeit small, mean the company is not insolvent at the balance sheet date.
• Single director with significant control likely provides focused management and accountability.

4. Due Diligence Notes:

• Investigate underlying reasons for the decline in working capital and equity between 2023 and 2024—whether due to operating losses, increased liabilities, or asset write-downs.
• Review cash flow statements and management accounts since 2024 year-end to assess current liquidity and ongoing operational viability.
• Assess the nature and terms of director advances to understand risks around repayment and impact on company finances.
• Confirm the company’s revenue trends and profitability given limited financial disclosures and absence of a profit and loss statement.