STEM@HOME LTD

Executive Summary

STEM@HOME LTD is a micro-entity with a recent positive shift to net asset surplus after two years of negative equity. While regulatory compliance is sound, the company’s liquidity buffer remains minimal and its financial history limited, indicating moderate risk. Further investigation into cash flow and operational sustainability is recommended to confirm financial stability.

STEM@HOME LTD - Analysis Report

Company Number: 14052451

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM

The company shows improvement from prior years with positive net assets in the latest financial year; however, the narrow working capital and early stage of operation pose moderate solvency and liquidity risks.

2. Key Concerns:

• Marginal Net Current Assets: The latest accounts show net current assets of only £1,892, which is a very thin liquidity buffer relative to current liabilities (£55,134).
• History of Negative Net Assets: For the first two years, net assets were negative (£-2,788), indicating prior accumulated losses or undercapitalization, which may impact financial stability.
• Small Scale and Limited Financial History: As a recently incorporated micro-entity (2022) with minimal fixed assets and a small balance sheet, the company may face operational risks typical of startups, including limited revenue diversification and cash flow volatility.

3. Positive Indicators:

• Turnaround to Positive Equity: The company moved from a negative net asset position to a positive equity of £3,994 in the latest year, suggesting improved financial management or capital injection.
• Compliance and Timely Filings: The company has filed accounts and confirmation statements on time with no overdue filings, evidencing good governance and regulatory adherence.
• Ownership and Control: The sole director and 75-100% shareholder, Mr. Francis John Jones, appears stable and engaged, which may benefit operational continuity.

4. Due Diligence Notes:

• Investigate the source of the positive net asset turnaround—whether from capital injection, retained earnings, or asset revaluation.
• Review cash flow statements or management accounts (if available) to assess ongoing liquidity beyond balance sheet snapshots.
• Evaluate the business model and revenue generation capacity given the small asset base and limited operating history.
• Confirm any contingent liabilities or off-balance-sheet commitments not reflected in the micro-entity accounts.
• Assess the background and reputation of the sole director for any potential governance risks.