Risk Assessment: RISK RANGER LIMITED (08610014)

1. Risk Rating: LOW

The company presents a fundamentally sound financial position with net assets of £193,138 against minimal liabilities of £1,517. The balance sheet has strengthened consistently over the past decade, liabilities are negligible, and all statutory filings are current. The primary risk stems from asset concentration in what appears to be a single property and sole-person dependency rather than financial distress.

2. Key Concerns

1. Extreme Asset Concentration Fixed assets constitute 88% of total assets (£171,263 of £194,654). The SIC code (68209 – letting and operating of own or leased real estate) and the registered address at "Flat 8" strongly suggest this is a single London residential property held within a corporate wrapper. This creates pronounced concentration risk—company value is entirely dependent on one asset's valuation and market liquidity.

2. Limited Financial Transparency As a micro-entity, the company files abbreviated accounts with no profit and loss statement, no cash flow statement, and minimal notes. There is no visibility into rental income (if any), operating costs, or whether the property generates sufficient cash flow to cover ongoing obligations. The steady net asset growth could reflect property revaluation rather than trading profitability.

3. Single-Person Dependency and Control Mr Bridgwater holds over 75% of shares, over 75% of voting rights, and the right to appoint and remove directors. He is the sole director. This concentration of control means key-person risk is absolute—absence, incapacity, or adverse personal circumstances could leave the company unable to function or make decisions.

3. Positive Indicators

• Consistent Net Asset Growth: Net assets have increased every year from £165,167 (2016) to £193,138 (2025), representing approximately 1.7% annualised growth. This suggests steady, if modest, value appreciation without volatility.

• Negligible Leverage: Total liabilities of £1,517 against total assets of £194,654 represent a debt-to-asset ratio of just 0.8%. There is no evidence of bank borrowing or external debt. The current ratio stands at approximately 15.4x (£23,391 / £1,517), indicating ample short-term liquidity.

• Regulatory Compliance: Both accounts and confirmation statements are up to date with no overdue filings. The company has maintained active status for over 11 years since incorporation in 2013, with no evidence of insolvency proceedings.

• Cash Position Improvement: Where disclosed, cash has grown from £1,600 (2020) to £10,742 (2023), suggesting the company is generating or retaining liquid funds rather than being cash-constrained.

4. Due Diligence Notes