SIX EIGHTY LIMITED

1. Risk Rating: MEDIUM

The company is solvent, active, and its statutory filings are not overdue. However, the absence of a filed profit and loss account, volatility in net assets over the last four years, and concentrated ownership by the two directors justify a medium risk rating for a potential investor.

2. Key Concerns

• Limited financial transparency: As a micro-entity, the company has elected not to include a profit and loss account in its filed statements. Without revenue, gross margin, or operating profit data, it is not possible to assess trading performance or whether the current net asset position is sustainable.
• Volatility in net assets: Shareholders’ funds fell from £37,915 at 31 July 2022 to £16,168 at 31 July 2024, before recovering to £25,642 at 31 July 2025. The available balance sheet data does not explain the drivers of this fluctuation.
• Concentrated ownership and control: The two current directors are the only persons with significant control, each holding between 25% and 50% of the shares. This creates key-person dependency and means there is no independent shareholder oversight.

3. Positive Indicators

• Active company status with no insolvency, liquidation, or administration proceedings.
• Accounts and confirmation statement are not overdue; regulatory filings appear current.
• Positive net assets of £25,642 and shareholders’ funds of £25,642 as at 31 July 2025.
• Current assets of £55,004 exceed creditors falling due within one year of £30,291, indicating short-term solvency.
• Net assets have improved year-on-year from the 2024 low.
• Trading history extends back to incorporation in 2014.

4. Due Diligence Notes

• Request management accounts, including profit and loss and cash flow statements, for at least the last three years to assess profitability and cash generation.
• Obtain a breakdown of current assets (cash at bank, debtors, work in progress) and an aged creditor analysis for the £30,291 due within one year.
• Investigate the reasons for the decline in net assets between 2022 and 2024 and the factors behind the 2025 recovery.
• Confirm customer concentration and the contract pipeline for the IT services business (SIC 62090).
• Check the Insolvency Service director disqualification register and any county court judgments against the company.
• Review related-party transactions, given that the directors are also the shareholders.