Company Number: 14126146

Analysis Date: 2025-07-20 15:59 UTC

1. Risk Rating: LOW
   RIDGACRE LTD demonstrates a stable financial position relative to its micro-entity scale, with net current assets positive in the latest and prior years. There are no overdue filings, and the company is compliant with reporting deadlines. The scale of operations is very small, which naturally limits exposure but also means financial data is limited.

2. Key Concerns:

• Low Asset Base and Working Capital: Current assets and net assets are minimal (£2,013 and £167 respectively in 2024), indicating a very small capital buffer to absorb shocks.
• Limited Financial History & Size: Incorporated in 2022, the company has only two full years of financial data, restricting trend analysis and long-term viability assessment.
• Single Employee Operation: The company reports an average of one employee, which may constrain operational capacity and resilience.

3. Positive Indicators:

• Positive Net Current Assets: Though small, net current assets remain positive and slightly increased from £130 in 2023 to £167 in 2024, suggesting working capital is sufficient to meet short-term liabilities.
• Timely Compliance: No overdue accounts or confirmation statements; filings are up to date indicating sound governance practices.
• No Indication of Off-Balance Sheet Liabilities: Footnotes confirm no off-balance sheet disclosures, reducing hidden liability risk.
• No Signs of Insolvency or Liquidation: Company status is active, with no indication of distress or formal insolvency proceedings.

4. Due Diligence Notes:

• Review Profit and Loss Data: The available data lacks income statement details; understanding revenue and profitability trends is critical to assess operational sustainability.
• Examine Cash Flow and Funding Sources: Given minimal asset base, investigate cash flow sufficiency and any external funding arrangements or guarantees.
• Director Background and Governance: Confirm director credentials and any potential related party transactions given the company’s small scale.
• Business Model Viability: Evaluate the management consultancy market niche and client base to judge sustainability beyond the micro scale.
• Future Capital Commitments: Check for any commitments or contingent liabilities not captured in current accounts.