Company Number: 14071131

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: LOW to MEDIUM
   Regen Automation Ltd demonstrates improving financial health with positive net assets and working capital in its latest financial year, reducing solvency risk. However, as a recently incorporated micro-entity with limited financial history and modest asset base, some caution is warranted.

2. Key Concerns:

• Limited Financial History: The company is very young (incorporated 2022) with only two years of financial data, limiting trend analysis and long-term stability assessment.
• Past Negative Net Assets: In its initial periods, the company reported negative net assets and working capital, indicating prior financial stress or startup losses.
• Small Scale and Concentration Risk: The company is micro-sized with only three employees and is wholly controlled by one director, increasing operational and governance risks due to key person dependency.

3. Positive Indicators:

• Strong Improvement in Financial Position: Latest accounts show net current assets of £46,380 and net assets of £54,165, a significant turnaround from negative equity previously, indicating improved solvency.
• No Overdue Filings or Compliance Issues: The company is active with up-to-date accounts and confirmation statement filings, suggesting good regulatory compliance.
• Clear Industry Focus: Operating in installation of industrial machinery and equipment with a dedicated website and contact details, indicating operational activity and market presence.

4. Due Diligence Notes:

• Obtain management accounts or cash flow statements to assess liquidity trends beyond year-end snapshot.
• Review the nature of creditors and any contingent liabilities not evident in filleted accounts.
• Investigate customer base and contract length to understand revenue stability and growth prospects.
• Confirm director background and capacity given the single director and sole shareholder structure.
• Verify the company's insurance, bonding, and regulatory licenses required for industrial machinery installation.