SIMPLIFY IP LIMITED
Executive Summary
Simplify IP Limited is a micro-entity with a stable solvency position and timely filings, operating under single-director control in a specialized intellectual property niche. While liquidity has decreased slightly year-on-year, the company currently maintains positive working capital and shows no regulatory compliance concerns. Further review of cash flows and operational dependencies is advisable to confirm ongoing financial stability.
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This analysis is opinion only and should not be interpreted as financial advice.
SIMPLIFY IP LIMITED - Analysis Report
Risk Rating: LOW
The company's financial position shows positive net current assets and net assets, indicating it can meet short-term obligations. Compliance with filing deadlines and no overdue accounts or confirmation statements further supports low immediate risk.Key Concerns:
- Significant decline in current assets and net assets from 2023 to 2024 suggests some reduction in liquidity and financial buffer.
- Extremely limited scale of operations with only one employee (the director) implies dependency on a single individual, which may affect operational resilience.
- Reliance on a single controlling shareholder/director (100% ownership and voting rights) concentrates governance risk and may impact decision-making transparency.
- Positive Indicators:
- Consistent positive net current assets and net assets in the latest filings indicate solvency and ability to cover liabilities.
- No overdue filings or compliance issues; accounts and confirmation statements are up to date.
- Business operates in a specialized niche (patent and copyright agency) with professional expertise (director is a patent attorney), suggesting operational focus and potential for stable revenue streams.
- Due Diligence Notes:
- Investigate reasons behind the drop in current assets and net assets between 2023 and 2024, including any one-off expenses or revenue declines.
- Review cash flow statements or bank statements (if available) to assess liquidity beyond balance sheet figures.
- Understand client base, contract stability, and revenue pipeline given the micro-entity size and sole employee structure.
- Assess director’s background and any potential related party transactions given sole control of the company.
- Confirm no undisclosed contingent liabilities or pending regulatory issues.
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