SPARKLING STAFF RECRUITMENT LTD

Executive Summary

SPARKLING STAFF RECRUITMENT LTD presents a low financial risk profile with positive net assets and minimal liabilities. The company is small, single-director, and maintains timely statutory compliance. However, further clarity on turnover, director loans, and business operations is advised to fully assess operational sustainability and governance robustness.

SPARKLING STAFF RECRUITMENT LTD - Analysis Report

Company Number: 13159404

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets, minimal liabilities, and timely filings, indicating a low risk of insolvency or liquidity issues.

2. Key Concerns:

• Limited scale of operations reflected by very small turnover and minimal share capital (£1.00).
• Concentration risk as the company is a single-director entity with all loans to the director, potentially affecting governance and operational independence.
• The company operates in a niche sector (dental practice activities) but appears to be a recruitment intermediary, which may warrant clarification on business model sustainability.

3. Positive Indicators:

• Consistently positive net current assets growing from £1,643 in 2023 to £3,775 in 2024, indicating strengthening working capital.
• Very low current liabilities (£1), suggesting minimal short-term debt or payables pressure.
• Up to date with all statutory filings and no overdue accounts or confirmation statements.
• Director’s loan accounts are interest-free and repayable on demand, reducing financial burden.
• Exemption from audit is appropriate given size, and the financial statements are prepared in compliance with small companies’ regime.

4. Due Diligence Notes:

• Confirm the actual turnover and revenue streams, as turnover figures were not disclosed in the financial statements.
• Understand the director loan arrangement better, including repayment plans and whether the loans represent working capital funding or retained earnings.
• Verify the business model given the SIC code (86230 - dental practice activities) versus the company name suggesting recruitment; ensure proper classification and operational clarity.
• Assess any related party transactions and governance protocols given single director status to evaluate potential operational risks.
• Review cash flow statements if available to confirm liquidity beyond balance sheet snapshot.