SQUARE STEP LTD

Executive Summary

Square Step Ltd remains solvent with positive net current assets and shareholder equity but has experienced a notable decline in net assets and an increase in current liabilities in its most recent year. The company maintains good compliance with filing requirements and benefits from clear ownership control. Further inquiry into the financial changes and underlying cash flow is recommended to fully assess ongoing operational and liquidity risks.

SQUARE STEP LTD - Analysis Report

Company Number: NI685445

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates positive net current assets and shareholder funds, indicating solvency. However, the decline in net assets and increased current liabilities in the latest year suggest a slight erosion of financial strength, warranting moderate caution.

2. Key Concerns:

• Declining net assets from £6,913 in 2023 to £2,640 in 2024, a significant reduction in equity value within one year.
• Increase in current liabilities from £86 (2023) to £3,071 (2024), potentially impacting short-term liquidity.
• Presence of accruals and deferred income (£300 in 2024) and prior long-term creditors (£800 in 2023) suggests timing differences in cash flows that should be monitored.

3. Positive Indicators:

• Positive net current assets in all reported years indicate the company can meet short-term obligations.
• Consistently positive shareholders’ funds and net assets, albeit declining, show ongoing equity support.
• Single director ownership with full control may enable agile decision-making and clear governance.
• No overdue filings or compliance issues; accounts and confirmation statements are up to date, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate causes behind the substantial drop in net assets and rise in current liabilities in the latest financial year. Review detailed notes or management commentary if available.
• Assess the company’s cash flow statement and working capital management to confirm liquidity position beyond balance sheet snapshots.
• Understand the nature and timing of accruals and deferred income to evaluate impact on cash flow and obligations.
• Confirm operational sustainability given the micro-entity status and single employee; assess revenue streams and client concentration.
• Review any related party transactions or director loans that may affect financial stability.