Company Number: 12913890

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: LOW
   Workspot Ltd demonstrates a positive net asset position with steadily improving net current assets and shareholders' funds over recent years. The company is current on all statutory filings with no overdue accounts or confirmation statements. The financial data indicates a stable micro-entity with limited liabilities and a small but positive equity base, supporting a low solvency risk profile.

2. Key Concerns:

• Reliance on Director Loans: The company has an unsecured, interest-free director loan of £8,590 outstanding as of 2024, which may indicate reliance on internal funding rather than external financing. This could pose a liquidity risk if not managed prudently.
• Minimal Fixed Assets: With only £612 in fixed assets and a micro account category, the company’s operational base may be limited, potentially impacting long-term sustainability if business scale or diversification is desired.
• Single Employee/Director Operation: The company has an average of one employee including directors, which may raise operational risk concerns regarding business continuity and capacity.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets increased from £6,955 in 2023 to £13,579 in 2024, reflecting improved short-term liquidity and working capital management.
• Positive Equity Growth: Shareholders’ funds more than doubled from £6,953 in 2023 to £14,191 in 2024, demonstrating retained earnings or capital injections supporting solvency.
• Compliance and Timeliness: No overdue filings or accounts, indicating good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and sustainability of director loans, including repayment plans and potential impact on cash flow.
• Review the company’s revenue streams and profitability metrics, which are not disclosed here, to assess operational viability beyond balance sheet strength.
• Examine any related party transactions given the director loan and single director scenario to ensure transparency and arm’s length dealings.
• Confirm details around business operations given the SIC codes spanning management consultancy and real estate activities, to understand diversification and risk exposure.