RISKFLAG LTD

Executive Summary

Riskflag Ltd is a recently established private limited company exhibiting compliance with statutory requirements and growth in equity and receivables. However, a significant increase in current liabilities and tight working capital suggest moderate liquidity and solvency risks. Further investigation into debtor quality and creditor terms is recommended to assess operational and financial stability more accurately.

RISKFLAG LTD - Analysis Report

Company Number: 14114560

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: MEDIUM
   The company is active and compliant with filing deadlines, which is positive. However, there is a notable increase in current liabilities relative to current assets, and limited financial history due to recent incorporation (2022). The modest net current assets suggest limited cushion against short-term obligations.

2. Key Concerns:

• Liability Growth: Current liabilities have surged from approximately £30k in 2023 to £426k in 2024, a more than tenfold increase, which could indicate cash flow pressure or delayed creditor payments.
• Working Capital Tightness: Net current assets remain positive but marginal (£25k in 2024), suggesting liquidity risks if liabilities crystallize sooner than assets convert to cash.
• No Employees Reported: The absence of employees may mean dependence on directors or contractors, potentially affecting operational scalability and sustainability.

3. Positive Indicators:

• Compliance and Governance: The company has no overdue filings and maintains current director appointments with no disqualifications indicated.
• Strong Debtor Position: Trade debtors increased significantly to £322k, reflecting successful contract wins or sales growth, which if collectible, supports liquidity.
• Equity Growth: Shareholders’ funds nearly doubled from £13k in 2023 to £25k in 2024, indicating retained earnings and some capital support.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance (£322k) to assess real liquidity.
• Review creditor aging and terms behind the £426k current liabilities to understand repayment timing and risk of default.
• Clarify revenue generation, profitability, and cash flow details absent from the accounts, as the income statement is not filed.
• Understand the operational model given no employees are reported—whether the company outsources or relies solely on directors.
• Confirm directors’ background and related party transactions given the concentration of shareholding and control among three directors.