Company Number: 13583007

Analysis Date: 2025-07-20 14:47 UTC

1. Risk Rating: LOW

Justification: Sandro Business Limited shows a stable financial position with net assets of £538k as at 31 March 2024, solid positive net current assets (£336k), and no overdue filings. The company holds investment property valued consistently at £625k, indicating a tangible asset base. Current liabilities are well covered by current assets, suggesting manageable liquidity risk.

2. Key Concerns:

• The company carries a significant long-term bank loan balance (£454k), which should be monitored for repayment risk and interest coverage.
• The company has a relatively small cash balance (£73k) compared to current liabilities (£8.5k) but does maintain good net current assets due to debtors, which could pose liquidity timing risks if debtor collection slows.
• The company still appears to be relatively young (incorporated 2021) and micro-sized, with only one employee (the director), which may limit operational resilience and scalability.

3. Positive Indicators:

• No overdue statutory filings (accounts and confirmation statements) indicating good compliance and governance.
• Positive net current assets and net assets reflect a solvent and financially stable position.
• Investment property held at fair value provides a stable asset base and potential income stream.
• Consistent or stable fixed asset values and shareholder funds over reporting periods demonstrate financial consistency.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the £454k bank loan to assess any potential refinancing or covenant risks.
• Investigate the composition and collectability of the £271k debtors to confirm cash flow reliability.
• Confirm the absence of director or related-party transactions that might affect financial health.
• Understand the nature of the operating activity under SIC 68209 to assess business sustainability.
• Review the company’s business plan and revenue generation since turnover and profitability data are not disclosed.