Company Number: 14584480

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

1. Risk Rating: LOW

The company, SPRAY TECH N.E. LTD., shows a strong net current asset position with current assets significantly exceeding current liabilities, indicating good short-term financial health. The absence of overdue filings and the relatively recent incorporation date suggest compliance and operational stability at this early stage.

2. Key Concerns:

• Director Turnover: There has been notable director turnover within a short period, including the resignation of two directors and a same-day appointment and resignation of another. This could imply governance instability or transitional management issues.
• Limited Financial History: With incorporation in 2023 and financial data covering less than a full year, the company’s operational track record is minimal, limiting the ability to assess long-term sustainability.
• Concentrated Control and Small Share Capital: Control is held by two individuals each owning 25-50% shares, with only £1 share capital issued, which might raise concerns about capital adequacy and potential risks related to decision-making concentration.

3. Positive Indicators:

• Strong Net Current Assets: £47,392 net current assets versus £12,613 current liabilities reflects healthy working capital and liquidity.
• Compliance: No overdue accounts or confirmation statement filings, demonstrating regulatory compliance.
• Clear Accounting Policies: The company follows relevant UK accounting standards and has prepared financials under the small companies regime appropriately.

4. Due Diligence Notes:

• Investigate reasons behind rapid director resignations and confirm current management stability.
• Review turnover and profit/loss figures once available to assess business sustainability.
• Verify the nature and collectability of the large debtor balance (£59,910) to confirm liquidity quality.
• Assess any plans for increasing share capital or financial backing to support growth.
• Confirm whether the company has operational contracts or revenue streams consistent with its SIC code (Fire service activities).