Company Number: 14225505

Analysis Date: 2025-07-20 16:37 UTC

1. Risk Rating: LOW
   SP Tiles Limited is a recently incorporated micro-entity with modest but positive net assets and no overdue filings. The company’s financials show a small but improving net current asset position and shareholders' funds, indicating solvency at this early stage. There is no indication of liquidation or administration, and statutory obligations appear up to date.

2. Key Concerns:

• Limited Financial Scale and History: Being a micro-entity incorporated in 2022, the company has limited financial data and operating history, which constrains comprehensive risk assessment.
• Low Absolute Asset and Equity Values: Net assets and shareholders’ funds are very small (£721 as of July 2024), which could limit financial resilience against unexpected expenses or downturns.
• Director Loans and Related Party Transactions: The 2024 accounts note a director loan balance that was fully repaid during the year, highlighting reliance on director financing. While currently settled, such arrangements warrant monitoring for potential liquidity impact.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: The company maintains a positive net current asset position, improving from £19 in 2023 to £721 in 2024, suggesting prudent working capital management.
• Up to Date Filings and Compliance: Both accounts and confirmation statement are filed on time with no overdue reports, reflecting good regulatory compliance.
• Stable Management: The company has a single current director with no adverse records noted, supporting operational stability at this stage.

4. Due Diligence Notes:

• Verify the nature and ongoing terms of any director financing or related party transactions to assess liquidity risk.
• Review business plan and cash flow forecasts to evaluate sustainability and capacity to scale beyond micro-entity status.
• Confirm absence of contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Monitor any changes in director appointments or shareholding structure that could affect control or governance.