STURDYSTRA LTD

Executive Summary

STURDYSTRA LTD’s financials as of end-2023 reveal a negative net asset base and working capital deficiency, highlighting significant solvency and liquidity risks for this newly incorporated micro-entity. While regulatory compliance is up to date and the concentrated ownership structure may aid management agility, the company’s minimal scale and negative equity warrant thorough investigation of cash flow and ongoing operational viability before considering investment.

STURDYSTRA LTD - Analysis Report

Company Number: 14563459

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-24) indicating insolvency on a balance sheet basis. Current liabilities exceed current assets, reflecting a working capital deficiency and potential liquidity issues. The company is very new (incorporated late 2022) with minimal operating history and only one employee, adding to operational risk.

2. Key Concerns:

• Negative equity of £24 at year-end 2023 signals the company’s liabilities exceed its assets, raising solvency concerns.
• Net current liabilities of approximately £24 imply insufficient short-term assets to cover immediate debts, indicating liquidity constraints.
• Limited operational scale with only one employee and minimal asset base suggests vulnerability to cash flow shocks and uncertain business sustainability.

3. Positive Indicators:

• The company is compliant with statutory filing deadlines for both accounts and confirmation statements, indicating adherence to regulatory requirements.
• Ownership and control are concentrated in a single director and significant shareholder, potentially allowing for swift decision-making.
• The company operates in the IT and management consultancy sectors, which can scale with limited fixed assets and overheads, potentially allowing for rapid growth if managed well.

4. Due Diligence Notes:

• Review cash flow statements and any management accounts to assess ongoing liquidity and working capital management beyond the snapshot balance sheet.
• Investigate the nature and timing of current liabilities to understand if these are trade payables, tax obligations, or other debts.
• Assess the business model, client base, and revenue streams given the company’s recent formation and limited financial history.
• Confirm if any director loans or financial support from the sole shareholder have been extended or planned to address negative equity.
• Check for any contingent liabilities or off-balance sheet commitments that might exacerbate financial risk.