SANITY UK INC LTD

Executive Summary

Sanity UK Inc Ltd is a small, recently incorporated IT services company with adequate liquidity and a positive net asset position. However, its dependency on significant intra-group funding and limited financial history present moderate risks. The company maintains good compliance standards, but further review of intercompany arrangements and operational cash flows is recommended to fully assess financial stability.

SANITY UK INC LTD - Analysis Report

Company Number: 13812276

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and cash balances, indicating some liquidity. However, a significant creditor balance is owed to group undertakings, and the company is relatively new with limited financial history, which elevates risk to medium.

2. Key Concerns:

• High intra-group liabilities: £439,594 owed to group undertakings forms a large proportion of current liabilities, potentially indicating dependence on parent funding.
• Modest net assets: Net assets of £111,411 are low relative to liabilities, limiting financial buffer.
• Limited operational track record: Incorporated late 2021 with first accounts only for the period ending Jan 2023, so financial sustainability beyond initial support remains unproven.

3. Positive Indicators:

• Healthy cash position: £428,983 in cash at bank provides operational liquidity.
• Positive net current assets: £111,411 indicates working capital is positive after short-term liabilities.
• Clean compliance record: No overdue filings or accounts, and an unqualified auditor’s report demonstrate regulatory compliance.

4. Due Diligence Notes:

• Investigate terms and conditions of amounts owed to group undertakings to assess sustainability and repayment risk.
• Review ongoing operational cash flow generation beyond intra-group support to understand business viability.
• Confirm director and management integrity and track record given the company's reliance on parent company support.
• Monitor future filings for consistency in performance and any emerging liabilities or governance issues.