Company Number: 14615598

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: MEDIUM

Justification: Verve Risk Services Ltd is a newly incorporated private limited company (2023) with its first financial statements filed for the period ending 31 December 2023. The company shows net assets of £253k and net current assets of £447k, indicating a positive working capital position. However, the presence of a significant interest-free long-term loan of £569k repayable on demand introduces some solvency risk, as this liability is substantial relative to net assets and could be called in unexpectedly. The company's limited trading history and modest shareholder capital of £200 also temper the risk down from high, but these factors suggest caution.

2. Key Concerns:

• Large interest-free long-term loan (£569k) repayable on demand secured by a floating charge could be a liquidity risk if repayment is demanded unexpectedly.
• Negative profit and loss reserves of £177k suggest accumulated losses or initial investment write-offs, pointing to early-stage profitability challenges.
• Limited trading history (less than 2 years) with no detailed profit and loss information disclosed in accounts restricts assessment of operational performance and sustainability.

3. Positive Indicators:

• Positive net current assets (£447k) and overall net assets (£253k) indicate the company currently holds a solid asset base to meet short-term obligations.
• Cash balance of £171k provides an immediate liquidity buffer.
• Directors and significant control persons appear stable with no evident disqualifications or governance issues.
• On-time filing of accounts and confirmation statements with no overdue returns suggests regulatory compliance.

4. Due Diligence Notes:

• Request detailed management accounts or profit and loss statements to evaluate trading performance, revenue streams, and expense management.
• Clarify the nature and source of the £569k long-term loan, including terms, lender identity, and likelihood of repayment demand.
• Investigate the reason for negative P&L reserves and whether this reflects start-up losses or other impairments.
• Review cash flow forecasts to assess liquidity sufficiency given the repayable loan and operational cash needs.
• Confirm directors’ backgrounds and any related party transactions or guarantees associated with the loan.