SHERA D'SPAIN LIMITED

Executive Summary

SHERA D'SPAIN LIMITED is a small, active private company with ongoing compliance but exhibits moderate risk due to persistent negative net current assets and low net equity. While operational scale and director involvement provide some flexibility, liquidity pressures and growing tax liabilities warrant close monitoring. Further due diligence on receivables, cash flow, and business outlook is recommended to fully assess financial stability.

SHERA D'SPAIN LIMITED - Analysis Report

Company Number: 14165124

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing operations with no overdue filings and a single director with full ownership control. However, recurring net current liability positions and minimal net assets raise moderate concerns about its short-term solvency and liquidity.

2. Key Concerns:

• Negative net current assets in both reported years (£-1,475 in 2024 and £-1,899 in 2023) indicate potential liquidity pressure to meet short-term obligations.
• Accumulating corporation tax liabilities (£34,848 in 2024 up from £27,230 in 2023) with limited cash reserves (£3,477) may strain cash flow and risk tax payment delays.
• Very low net assets (£146 in 2024 down from £323 in 2023) suggest limited financial buffer and vulnerability to operational disruptions or adverse events.

3. Positive Indicators:

• Company status is active with no overdue statutory accounts or confirmation statements, indicating compliance and governance discipline.
• Director’s current account advances have been repaid within nine months, showing some internal financial management and cash recovery.
• The business is small in scale, employing only one person, which may imply low fixed overheads and operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors (£29,223) and director’s current account balances to confirm cash flow reliability.
• Assess cash flow forecasts or management accounts to understand how the company plans to resolve its working capital deficits and meet tax liabilities.
• Clarify the company’s revenue generation, contract status, and client concentration given its SIC codes in business support and management consultancy.
• Review the director’s experience and any related party transactions given sole control and ownership to evaluate governance and operational sustainability.