STEPHEN KELMAN LIMITED

Executive Summary

Stephen Kelman Limited is an early-stage IT consultancy with a modest financial base and limited operating history. While regulatory compliance is satisfactory and cash levels appear adequate, a marginal working capital deficit and concentration of control warrant cautious monitoring. Further inquiry into cash flow, profitability, and director governance is recommended to fully assess financial and operational stability.

STEPHEN KELMAN LIMITED - Analysis Report

Company Number: SC795003

Analysis Date: 2025-07-29 14:35 UTC

1. Risk Rating: MEDIUM
   Stephen Kelman Limited is a newly incorporated private limited company with a very limited operating history. The latest accounts show a marginally negative net current asset position and low net assets, which suggests limited financial buffer. However, the company is not overdue on filings and appears compliant, which reduces immediate regulatory concerns. The overall risk is moderate given the early stage of the company and constrained liquidity.

2. Key Concerns:

• Negative net current assets: Current liabilities (£29,020) slightly exceed current assets (£28,470) resulting in a net current liability of £550, indicating potential short-term liquidity pressures.
• Limited operating history and scale: Incorporated in January 2024 and reporting first accounts for a 15-month period, the business lacks historical financial performance to assess operational sustainability.
• Concentration of control: Single director and sole significant controller (owning 75-100% shares and voting rights) may present governance risks and reliance on one individual for business continuity.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
• Cash position relatively strong: Of the current assets, £25,901 is held in cash, which provides some immediate liquidity to meet obligations.
• Minimal fixed asset base: Tangible fixed assets are low (£2,147 net book value), indicating limited capital expenditure and potentially flexible cost structure.

4. Due Diligence Notes:

• Cash flow and working capital management: Investigate ongoing cash flow projections and client payment terms to understand how the company will address the slight working capital deficit.
• Revenue generation and profitability: As income statement data is not provided (exempt for small companies), request underlying profit and loss figures or management accounts to assess operational viability.
• Director background and related party transactions: Review the director’s experience and any transactions with related parties given the single director structure and control concentration.
• Provisions for liabilities (£408): Clarify nature and likelihood of these provisions as they impact net assets and future cash outflows.