UP2SPEED MARKETING LIMITED

Executive Summary

Up2Speed Marketing Limited exhibits a healthy financial position with increasing net assets and working capital, supported by stable cash balances and timely regulatory compliance. However, investors should monitor the rising corporation tax liabilities and the impact of lease commitments on liquidity. The company’s small operational scale and key-person dependency warrant further operational due diligence.

UP2SPEED MARKETING LIMITED - Analysis Report

Company Number: 14355322

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: LOW
   Justification: The company demonstrates a solid net asset position relative to its size, with positive working capital and no overdue filings. It maintains adequate cash balances and appears compliant with regulatory requirements, indicating a low immediate risk to solvency or liquidity.

2. Key Concerns:

• Increasing Corporation Tax Liability: Corporation tax creditors have risen from £4,814 (2023) to £6,128 (2024), suggesting growing tax obligations that could pressure cash flow if not managed carefully.
• Dependence on Directors: The two directors also control significant shareholding (each 25-50%) and the business employs only two people, indicating operational dependency on a small management team which could pose continuity risks.
• Operating Lease Commitment: The company has a future non-cancellable lease commitment of £18,172 between one and five years, which is material relative to its current size and cash resources, potentially impacting future liquidity.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets improved significantly to £6,757 in 2024 from £2,327 in 2023, indicating better short-term financial health.
• Positive Net Assets and Shareholders’ Funds: Net assets increased to £8,650 in 2024 from £2,622 in 2023, reflecting retained earnings growth and a stronger equity base.
• Up-to-date Regulatory Filings: No overdue accounts or confirmation statements, showing good compliance and governance discipline.
• Cash Position Stable: Cash balances remain stable (~£11,000), supporting liquidity.

4. Due Diligence Notes:

• Review the nature and timing of the corporation tax liabilities to confirm if these are adequately provisioned and to understand any tax planning or payment schedules.
• Assess the sustainability of revenue and profitability trends, given the company is exempt from audit and only provides limited financial statements.
• Evaluate lease terms and potential impact on cash flow, including any options for renegotiation or subletting.
• Confirm absence of any director disqualifications or legal proceedings; current directors appear to be in good standing.
• Consider obtaining more detailed management accounts to monitor cash flow and operational performance beyond the statutory filings.