SAPPHIRE ROCK LIMITED

Executive Summary

Sapphire Rock Limited is a small, privately controlled management consultancy in good standing with Companies House and maintains positive net assets, indicating low immediate solvency risk. However, the notable drop in net current assets and operational reliance on a single director warrant further review to ensure ongoing liquidity and business continuity. Overall, the company appears stable but requires monitoring given its size and concentration of control.

SAPPHIRE ROCK LIMITED - Analysis Report

Company Number: 13526418

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net current asset position and positive shareholders' funds with no overdue filings, indicating a low risk of insolvency or liquidity issues at this stage.

2. Key Concerns:

• Declining net current assets: Net current assets decreased from £112,274 in 2022 to £53,148 in 2023, which may indicate reduced liquidity or operational cash generation.
• Limited scale of operations: The company has only one employee (the director), which may present operational concentration risk and sustainability concerns if key personnel are unavailable.
• Reliance on a single director and PSC: Mark De Klerk holds significant control and is the sole director, potentially raising governance risks if succession or additional oversight is lacking.

3. Positive Indicators:

• Compliance: All statutory accounts and confirmation statements are filed timely with no overdue status, evidencing good regulatory compliance.
• Positive net current assets and shareholders’ funds: The company maintains a comfortable buffer of current assets over liabilities, supporting short-term solvency.
• Micro-entity accounting: The company benefits from simplified reporting requirements, reflecting its manageable size and scope.

4. Due Diligence Notes:

• Investigate the reason for the significant reduction in current assets and net current assets between 2022 and 2023 to assess if cash flow or receivables issues exist.
• Review business model and revenue streams to evaluate sustainability given the very small operational scale and employee count.
• Confirm no undisclosed liabilities or contingent risks, especially given the sole control by one individual and no audit requirement.
• Assess background and track record of the director/PSC for any past governance or compliance concerns.