Company Number: 14125257

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: LOW
   RAO SP LTD demonstrates a strong solvency position with net assets of £105,302 as of 31 May 2024, significantly increasing from £40,600 the prior year. Current assets (primarily cash) comfortably cover current liabilities, indicating good liquidity. The company is active, compliant with filing deadlines, and shows no signs of financial distress or regulatory issues.

2. Key Concerns:

• The company is very recently incorporated (May 2022) and thus has a limited financial track record, which restrains long-term operational assessment.
• Director’s current account shows a negative balance (£5,760), indicating the director has lent funds or the company owes monies to the director; while not unusual in small companies, this should be monitored for potential related party risk.
• The accounts are unaudited and prepared under the small companies regime, which limits external validation of financial information.

3. Positive Indicators:

• Cash position improved significantly from £55,432 to £134,436 over the year, enhancing liquidity.
• Net current assets rose substantially to £105,113, showing working capital strength.
• The sole director and 100% shareholder is consistent and controls the company, potentially aiding quick decision-making.
• The company is timely with statutory filings (accounts and confirmation statements not overdue).
• No indications of insolvency, liquidation, or administration processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s current account balance to understand any contingent liabilities or financing arrangements.
• Review turnover, profitability, and cash flow trends beyond the balance sheet to assess operational sustainability, as the Statement of Income and Retained Earnings has not been filed per Section 444 exemptions.
• Confirm the company’s business model and revenue sources in hospital activities (SIC 86101) given the lack of explicit turnover data.
• Consider governance practices given the single director/shareholder structure and absence of audit.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in the accounts.