XRD NANO LIMITED
Executive Summary
XRD Nano Limited demonstrates growth in net assets and working capital with no regulatory compliance issues, reflecting operational progress since its 2021 incorporation. However, the sharp increase in current liabilities alongside a reduction in cash balances introduces liquidity risks warranting further cash flow analysis. Governance concentration also suggests the need for scrutiny of management practices.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
XRD NANO LIMITED - Analysis Report
Risk Rating: MEDIUM
The company shows positive net assets and working capital growth but also a significant increase in short-term liabilities and a sharp reduction in cash balances, indicating some liquidity risk. The financial data is relatively limited due to the company's recent incorporation and small size, but the debt profile and cash trends warrant caution.Key Concerns:
- Rising Current Liabilities: Current liabilities more than doubled from £175,909 in 2024 to £383,996 in 2025, principally driven by trade creditors, which may pressure short-term liquidity.
- Decreasing Cash Reserves: Cash on hand dropped markedly from £57,040 to £22,844 in one year, a potentially concerning sign regarding cash flow management.
- Concentration of Control: A single individual controls between 50-75% of shares and voting rights, with sole director status, which may raise governance and succession risks.
- Positive Indicators:
- Growing Net Assets and Equity: Shareholders’ funds increased significantly from £140,235 to £243,644, indicating retained earnings growth and strengthening capital base.
- Improved Working Capital: Net current assets improved from £57,155 to £161,376, suggesting that current assets exceed liabilities by a healthy margin despite the increase in creditors.
- No Filing Overdues or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance for a young company.
- Due Diligence Notes:
- Investigate the reasons behind the large increase in trade creditors and overall current liabilities, including payment terms and supplier relationships.
- Assess cash flow statements and forecasts to understand cash burn versus inflows, especially given the drop in cash holdings despite asset growth.
- Review the nature of fixed asset investments and intangible assets to determine asset quality and potential impairments.
- Evaluate governance practices given the director’s concentration of control and limited board composition.
- Confirm any contingent liabilities or off-balance sheet commitments not disclosed in the filings.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company