SOCIALKOMB LTD

Executive Summary

SOCIALKOMB LTD is a micro-entity with modest financials showing consistent profitability and positive net assets, posing a low solvency and liquidity risk at this scale. However, the very limited capital base, small and declining turnover, and reliance on a single director warrant further investigation into business viability and governance. Regulatory compliance is up to date, supporting operational stability within its current scope.

SOCIALKOMB LTD - Analysis Report

Company Number: 13144818

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: LOW

Justification: SOCIALKOMB LTD is a micro-entity with a very modest scale of operations and financial size. The company shows consistent positive net assets and profitability over the past four years, no current liabilities, and no overdue filings. These indicators suggest a low risk of insolvency or liquidity problems given the current size and scope of the business.

2. Key Concerns:

• Limited Scale and Revenue: The turnover remains very low (£13,789 in the latest year) with a declining trend, which may impact future viability if growth does not materialize.
• Narrow Capital Base: Share capital is only £1.00, reflecting minimal initial equity which could constrain capacity to absorb losses or fund expansion.
• Reliance on a Single Director: The company appears to be managed by one director who is also the sole registered address, potentially concentrating operational and governance risk.

3. Positive Indicators:

• Positive Net Assets: Net assets remain positive and have consistently been above £800, indicating no accumulated losses or erosion of equity.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Profitability: Despite small scale, the company reported a profit (£522 in the latest year), indicating operational viability at current size.
• No Current Liabilities: The absence of current liabilities reduces pressure on working capital and liquidity.

4. Due Diligence Notes:

• Verify the nature and sustainability of revenue streams given small and declining turnover to assess business model viability.
• Review cash flow trends and access to any external funding or credit facilities since limited equity capital may restrict operational flexibility.
• Confirm the director’s background and track record, including any potential related party transactions or conflicts of interest.
• Investigate any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts.
• Assess plans for growth or capitalization to understand how the company intends to scale or improve financial strength.