SUNRISE TECH LTD

Executive Summary

Sunrise Tech Ltd presents a low risk profile based on its current financial position, with strong liquidity and compliance. However, the decline in net assets and significant changes in debtor balances warrant further review. Operationally, the company’s reliance on a sole director and employee suggests the need for assessing business continuity risks.

SUNRISE TECH LTD - Analysis Report

Company Number: 13288022

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position, healthy cash reserves, and no overdue statutory filings. Its financials indicate sufficient working capital and solvency within the reporting period.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £24,323 in 2023 to £19,554 in 2024, indicating some erosion of equity.
• Reduction in Debtors: Debtors fell significantly from £35,887 to £6,942, which could reflect changes in revenue recognition or collection patterns needing clarification.
• Single Director and Employee: The company operates with only one director and one employee, which may pose operational risks and limit business continuity.

3. Positive Indicators:

• Strong Cash Position: Cash increased markedly from £8,793 to £33,016, enhancing liquidity and ability to meet short-term obligations.
• Positive Net Current Assets: The company maintains a comfortable net current assets position (£18,521), indicating good short-term financial health.
• Compliance: All accounts and confirmation statements are filed on time with no overdue status or penalties, reflecting good governance.

4. Due Diligence Notes:

• Investigate reasons behind the decrease in net assets and whether this trend is expected to continue.
• Clarify the cause of the reduction in debtors and assess the quality of receivables.
• Confirm the sustainability of operations given only one employee and director, and understand contingency plans for operational risk.
• Review the director’s disclosures and the company’s tax position, as no tax provisions or liabilities are explicitly noted.
• Consider obtaining management accounts or forecasts to assess trading performance beyond the balance sheet snapshot.