Company Number: 14123377

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: LOW
   Spotlight AV Ltd demonstrates a strong net asset base relative to its liabilities and shows growth in both fixed and current assets over the two-year period. The company is current with its filings and is not undergoing any insolvency proceedings, indicating solid compliance and operational stability for a young micro-entity.

2. Key Concerns:

• Limited financial history: Incorporated in 2022, the company has only two full years of financial data which limits trend analysis and long-term performance assessment.
• Small scale of operations: As a micro-entity with only 3 employees on average, the business may be vulnerable to market fluctuations or operational disruptions.
• Lack of audit and limited disclosures: The financials are unaudited and prepared under micro-entity exemptions, which reduces transparency and may obscure potential risks.

3. Positive Indicators:

• Strong net asset growth: Net assets more than doubled from £107,526 in 2023 to £236,694 in 2024, driven by increased fixed assets and improved working capital.
• Healthy liquidity position: Net current assets increased to £81,057, indicating good short-term financial health and ability to meet liabilities as they fall due.
• Timely compliance: No overdue accounts or confirmation statements, signaling good governance and regulatory adherence.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets, which nearly doubled in one year, to confirm their sustainability and legitimacy.
• Review cash flow statements and profit & loss accounts (not provided) to assess operational profitability and cash generation capacity.
• Confirm background and experience of directors, especially given the company’s young age and rapid asset growth, to evaluate management quality and governance.
• Assess customer concentration and market positioning given the “Other service activities not elsewhere classified” SIC code, which is broad and may conceal business risks.