SERENITY DEVELOPMENT PROJECTS LTD

Executive Summary

Serenity Development Projects Ltd presents a low risk profile based on its improved net asset position and current regulatory compliance. The company is small-scale, reliant on director funding, and unaudited, warranting targeted due diligence on liquidity and governance. Overall, the financial data suggests operational stability but highlights the need for further review of director loans and business sustainability.

SERENITY DEVELOPMENT PROJECTS LTD - Analysis Report

Company Number: 12632439

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: LOW

Justification: Serenity Development Projects Ltd shows a positive net asset position with increasing net current assets and shareholders’ funds over recent years. The company is current with filings and maintains a simple capital structure with a single director and sole shareholder. No signs of insolvency or liquidity distress are evident in the latest accounts.

2. Key Concerns:

• Reliance on Director Loans: The company has outstanding loans from the director (£5,122 as of 2024), which may indicate dependency on personal funding rather than external finance, potentially exposing the business to risk if the director withdraws support.
• Limited Scale of Operations: With only one employee and minimal tangible fixed assets, the business appears very small-scale, which may affect operational resilience and growth prospects.
• Absence of Audited Accounts: The accounts are unaudited under the small companies exemption, which limits external assurance on financial accuracy and completeness.

3. Positive Indicators:

• Improving Financial Position: Net current assets increased from negative to £13,643 in the latest year, and net assets grew to £14,173, indicating strengthening financial stability.
• Compliance and Governance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions, reflecting sound regulatory compliance.
• Sole Control with Clear Accountability: The sole director and 100% shareholder structure simplifies governance and decision-making, reducing complexity for investors.

4. Due Diligence Notes:

• Investigate the terms, repayment schedule, and security (if any) relating to director loans to assess risk of repayment issues.
• Review underlying business model and client base given the SIC code 82990 (other business support services) to understand revenue sustainability.
• Confirm any contingent liabilities or off-balance sheet obligations not disclosed in the unaudited accounts.
• Evaluate cash flow patterns beyond year-end snapshots to assess liquidity robustness.
• Consider obtaining management accounts or forecasts to gauge future operational performance and financial projections.