Company Number: 13243045

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: MEDIUM
   Ravan Bio Limited shows a solid net asset position and positive working capital; however, the significant reduction in net assets from £176,684 in 2024 to £114,570 in 2025 and the high level of accruals and deferred income (£91,614) relative to current liabilities pose cautionary signals regarding financial stability and cash flow management.

2. Key Concerns:

• Decline in Net Assets: A 35% decrease in net assets year-on-year may indicate operational losses or increased liabilities not fully offset by assets.
• Large Accruals and Deferred Income: The accruals and deferred income balance remains substantial and unchanged at £91,614, which could mask underlying cash flow timing issues or revenue recognition concerns.
• Minimal Fixed Assets and Low Employee Count: The micro-entity status with only one employee and very low fixed assets (£2,958) suggests limited operational scale and potential dependency on key personnel, which may affect sustainability.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains strong net current assets (£203,226) indicating it can cover short-term liabilities comfortably.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Established Shareholder Control: Ownership and control are clearly held by two experienced research scientists, which may indicate focused management and strategic alignment.

4. Due Diligence Notes:

• Investigate the nature and timing of the accruals and deferred income to assess their impact on cash flow and revenue recognition.
• Review detailed profit and loss information to understand the cause of the net asset decline and assess profitability trends.
• Confirm whether the single-employee structure is sufficient for the company’s operational needs and growth plans.
• Evaluate any off-balance sheet liabilities or contingent risks not reflected in the micro-entity accounts.