RED LEDGER LTD

Executive Summary

Red Ledger Ltd is a micro-entity operating within the accounting and auditing sector with a low risk profile based on current balance sheet strength and compliance history. The company shows improving liquidity and equity but remains small with limited fixed assets, suggesting limited operational scale. Further examination of long-term liabilities and capital sources is recommended for a comprehensive risk assessment.

RED LEDGER LTD - Analysis Report

Company Number: 14226707

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: LOW

The company demonstrates positive net assets and net current assets, with no overdue filings or indications of insolvency. The micro-entity accounts show a modest but growing equity base and healthy liquidity, supporting a low risk rating.

2. Key Concerns:

• The company has minimal fixed assets and limited scale, which may affect long-term operational sustainability if growth or capital investment is required.
• The balance sheet shows creditors classified as amounts falling due after more than one year (£30,348 in 2024), which warrants review to understand the nature and terms of these liabilities.
• Limited public financial information due to micro-entity status restricts deeper analysis of profitability or cash flows beyond the balance sheet.

3. Positive Indicators:

• Net current assets have increased from £28,794 (2023) to £49,262 (2024), indicating improving short-term liquidity.
• Shareholders’ funds increased significantly from £1,714 to £19,014 in one year, showing capital injection or retained profits.
• The company is compliant with filing deadlines and has no outstanding overdue accounts or confirmation statements.
• The business operates in accounting and auditing activities (SIC 69201), a professional service sector with steady demand.
• The average employee count is stable at 2, consistent with a small, manageable operation.

4. Due Diligence Notes:

• Verify the nature and repayment terms of the creditors due after one year to assess solvency risk related to long-term liabilities.
• Investigate sources of the increase in shareholders’ funds to determine whether it is through equity investment or operational profitability.
• Review cash flow statements if available to confirm liquidity beyond balance sheet figures.
• Confirm that directors and key personnel have no adverse conduct records or regulatory issues.
• Assess business model sustainability given the company’s micro size and limited asset base.