Company Number: NI687433

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: LOW
   SPERRIN NETWORK SERVICES LIMITED demonstrates a solid improvement in net assets and working capital over the latest financial year, indicating a strengthened financial position. The company is current with all statutory filings and shows no signs of financial distress or regulatory non-compliance.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with only one employee (the director), operational capacity and resilience to market fluctuations may be limited.
• Dependence on Single Director/Shareholder: Control and ownership are concentrated in one individual, which may pose governance and succession risks.
• Modest Asset Base: Fixed assets are relatively low, potentially limiting collateral availability and long-term investment capacity.

3. Positive Indicators:

• Improved Financial Position: Net assets increased substantially from approximately £13.6k in 2023 to £59.9k in 2024, with net current assets turning positive to £46.1k.
• Strong Liquidity: Current assets exceed current liabilities by a comfortable margin, suggesting good short-term liquidity.
• Compliance and Governance: The company is active, up-to-date with accounts and confirmation statement filings, and not in liquidation or administration.

4. Due Diligence Notes:

• Review the nature and sustainability of revenue streams underlying the asset growth to ensure operational stability.
• Investigate the reasons behind the significant increase in net assets and the decrease in fixed assets to understand asset composition changes.
• Assess the potential impact of having a single director/shareholder on decision-making and continuity planning.
• Confirm if any contingent liabilities or off-balance-sheet exposures exist given provisions noted in the accounts.
• Validate that the company’s exemption from audit is appropriate and that financial records are reliable given the lack of external audit.