Company Number: 12452758

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: LOW
   RISE SPACE LTD demonstrates a strong and improving financial position with positive net current assets and shareholders’ funds that have more than doubled year-on-year. The company is current with all filings and shows no indications of distress or regulatory non-compliance.

2. Key Concerns:

• Concentration of Control: Significant control is held by a small number of individuals and entities, with one PSC owning 75-100% shares and voting rights, which could pose governance risks.
• Operating Lease Commitments: The company has substantial non-cancellable operating lease commitments (£76,850), which may impact cash flow if revenue fluctuates.
• Increase in Taxation and Social Security Creditors: Taxation and social security creditors have more than doubled year-on-year (£127,193 vs £56,384), requiring clarification on payment timing and potential cash flow impact.

3. Positive Indicators:

• Strong Liquidity Position: Cash increased to £150,611 with net current assets of £301,886, reflecting healthy short-term liquidity.
• Consistent Growth in Equity and Assets: Shareholders’ funds increased from £159,210 (2023) to £351,977 (2024), indicating retained profitability or capital inflow.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings or audit requirements, reflecting good regulatory compliance.
• Business Growth: Increase in employees (from 7 to 11) suggests operational expansion and potential revenue growth.

4. Due Diligence Notes:

• Review detailed profit and loss data (not included) to assess revenue streams, profitability trends, and cost structure.
• Investigate the reasons behind the increase in taxation and social security liabilities to ensure these are manageable and not indicative of cash flow problems.
• Examine lease terms and future commitments to assess the impact on cash flow and operational flexibility.
• Evaluate governance arrangements given the concentrated ownership and control structure to understand decision-making and risk management processes.
• Confirm the nature of debtors, especially amounts owed by group undertakings (£55,979), to assess collectability and any related party risks.