SPARKLING 1 LIMITED

Executive Summary

SPARKLING 1 LIMITED shows a low risk profile based on available data, characterized by steady net asset growth and compliance with statutory filings. However, limited scale and lack of detailed financial disclosures require further due diligence to confirm ongoing operational stability and liquidity resilience.

SPARKLING 1 LIMITED - Analysis Report

Company Number: 12952245

Analysis Date: 2025-07-20 16:48 UTC

1. Risk Rating: LOW
   SPARKLING 1 LIMITED demonstrates a stable financial position for a micro-entity with positive net current assets and net assets increasing steadily over the last four years. There are no overdue filings or indications of financial distress.

2. Key Concerns:

• Limited scale: The company operates with one employee and minimal share capital (£100), which may constrain operational capacity and growth potential.
• Small asset base: Current assets and net assets remain modest (~£9k), implying limited financial buffer against unexpected costs or downturns.
• Lack of detailed financial information: Absence of profit and loss data and audit exemption limits visibility into profitability and operational performance.

3. Positive Indicators:

• Consistent net asset growth from £2,875 in 2020 to £9,130 in 2023, indicating prudent financial management and accumulation of retained earnings or reserves.
• Positive net current assets each year suggest the company can meet short-term liabilities from current assets without liquidity strain.
• Compliance with filing deadlines for both accounts and confirmation statements, reflecting good regulatory adherence.

4. Due Diligence Notes:

• Review underlying profitability and cash flow trends not visible in micro-entity accounts to assess operational sustainability.
• Confirm the nature and collectability of current assets to ensure liquidity claims are sound.
• Investigate business model scalability and any reliance on the sole director to understand operational risks.
• Verify absence of any contingent liabilities or off-balance sheet obligations.