Company Number: 15004696

Analysis Date: 2025-07-20 17:35 UTC

1. Risk Rating: LOW
   The company's financial data as of 31 July 2024 indicates a sound net asset position with positive working capital. There are no overdue filings, and the company is active and compliant with Companies House requirements. The micro-entity status and limited financial history suggest a low complexity business with manageable risks at this early stage.

2. Key Concerns:

• Limited Financial History: Being incorporated in July 2023 and filing its first set of accounts, there is no multi-year financial track record to assess trends or stability.
• Small Scale Operations: As a micro-entity with only 3 employees and modest fixed assets (£2,253), scalability and operational capacity may be constrained.
• Concentration of Control: Two directors who are also the only significant shareholders control the company, which could pose governance risks without independent oversight.

3. Positive Indicators:

• Strong Liquidity Position: Current assets (£32,677) comfortably exceed current liabilities (£15,094), resulting in net current assets of £17,583, indicating good short-term liquidity.
• Positive Net Assets and Shareholders’ Funds: The company reports net assets and shareholders’ funds of £19,836, demonstrating positive equity and solvency at this stage.
• Good Compliance Record: No overdue accounts or confirmation statements; filings are up to date, reflecting sound regulatory compliance.
• Clear and Transparent Governance: Directors have declared their roles and shareholdings, and the company’s accounts have been prepared in accordance with micro-entity standards.

4. Due Diligence Notes:

• Financial Performance and Profitability: Request detailed profit and loss accounts or management accounts to understand revenue streams, margins, and cash flow dynamics, as these are not included in the micro-entity filings.
• Contracts and Customer Base: Investigate the nature of the company’s contracts in telecommunications and construction, as well as customer concentration risk.
• Future Business Plans and Capital Requirements: Assess plans for growth, funding sources, and any capital injection needs given the small asset base.
• Director Background and Related Party Transactions: Verify the background of directors for any previous business issues and review transactions between the company and directors or related entities for potential conflicts.
• Impact of Name Change: Understand the rationale behind the January 2024 name change from SPECTRUM TELECOMMS LTD to SPECTRUM TELECOMMS AND CONSTRUCTION LTD, which may signal a strategic shift or business expansion.