SHARPAS4 LTD

Executive Summary

Sharpas4 Ltd exhibits a strong liquidity position with net current assets significantly exceeding current liabilities and steady growth in net assets over recent years. The company maintains regulatory compliance and shows no signs of financial distress. However, an investor should carefully review stock levels, cash flow sustainability, and governance due to concentrated ownership before proceeding.

SHARPAS4 LTD - Analysis Report

Company Number: 13060425

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: LOW The company demonstrates a solid net asset position and positive working capital with no overdue filings or liquidation status. The balance sheet shows net assets increasing year-on-year, and current assets comfortably exceed current liabilities, indicating good short-term liquidity.

2. Key Concerns:

• Limited Share Capital: The nominal share capital is only £100, which is common in small private companies but offers minimal equity buffer.
• High Stock Levels: Inventory remains constant at £100,000, a significant portion of current assets, which could pose liquidity risk if not quickly converted to sales.
• Concentrated Control: One person holds 75-100% of shares and voting rights, which may raise corporate governance concerns for institutional investors seeking diversified control.

3. Positive Indicators:

• Positive Net Current Assets: £70,565 at year-end 2024, up from £31,305 in 2023, indicating improved liquidity.
• Increasing Net Assets: Growth from £34,039 in 2023 to £75,450 in 2024 reflects retained earnings accumulation.
• On-Time Compliance: Both accounts and confirmation statement filings are up to date, demonstrating regulatory compliance.
• No Indication of Financial Distress: The company is active with no signs of insolvency or administration.

4. Due Diligence Notes:

• Verify the turnover and profitability trends to confirm operational sustainability, as detailed P&L data is not provided here.
• Assess inventory turnover rates and stock valuation methods to ensure stock is not overstated or obsolete.
• Review the company's cash flow statements to confirm cash generation ability beyond reported cash balances.
• Understand the business model and customer concentration given the SIC code (retail sale via mail order or internet).
• Investigate related party transactions or director loans given the concentrated ownership and control.
• Confirm absence of any director disqualifications or regulatory actions beyond publicly available data.