Company Number: 13583902

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: LOW
   SPHERE LOCAL LIMITED demonstrates a solid net asset position with positive and increasing net current assets over the past three years. The company is current on all statutory filings with no indications of insolvency or governance concerns.

2. Key Concerns:

• Limited financial disclosure due to micro-entity filing status restricts the depth of analysis on profitability and cash flow trends.
• Small employee base (4 in 2024) may indicate limited operational scale and potential vulnerability to key personnel risks.
• No audit performed, which is typical for micro companies but reduces independent verification of financial information.

3. Positive Indicators:

• Consistent growth in net current assets from £194 in 2021 to £64,549 in 2024 suggests improving working capital and financial stability.
• Shareholders’ funds have increased proportionally, indicating retained earnings or capital injections supporting solvency.
• Up-to-date statutory filings including accounts and confirmation statements, demonstrating regulatory compliance and good governance.
• The company is active with no signs of distress such as overdue filings, liquidation, or administration.

4. Due Diligence Notes:

• Review underlying income statement and cash flow data if available to assess profitability and liquidity beyond balance sheet snapshots.
• Confirm the nature and terms of the current assets to evaluate liquidity quality (e.g., cash vs. receivables).
• Investigate the business model and client base given the company’s micro size and limited staff to assess operational sustainability.
• Consider director backgrounds and any related party transactions given the shared address and surnames, to evaluate governance and control risks.