XUETANG LTD

Executive Summary

Xuetang Ltd is a newly established micro-entity demonstrating healthy liquidity and compliance with statutory requirements. Despite limited operational history and small scale, its positive net assets and timely filings support a low investment risk profile at this stage. Further monitoring of related-party transactions and business development is recommended to ensure sustained financial and operational stability.

XUETANG LTD - Analysis Report

Company Number: 15239406

Analysis Date: 2025-07-20 16:56 UTC

1. Risk Rating: LOW
   Xuetang Ltd's financial data indicates a positive net asset position with strong net current assets relative to short-term liabilities. The absence of overdue filings and no indication of insolvency or liquidation supports a low risk rating at this early stage.

2. Key Concerns:

• Early stage: Incorporated in late 2023, the company has a limited operating history, which inherently increases uncertainty about future performance and stability.
• Director loans: The director has outstanding advances (£2,808) to the company, which, while relatively small, should be monitored to ensure no liquidity strain arises from related party transactions.
• Limited scale and scope: As a micro-entity with only two employees and modest fixed assets, the company may be vulnerable to operational risks or market fluctuations given its small size and diversification across unrelated SIC codes (education, consultancy, wholesale).

3. Positive Indicators:

• Strong liquidity: Current assets (~£62.9k) significantly exceed current liabilities (~£16.5k), yielding net current assets of ~£46.5k, indicating good short-term liquidity.
• Compliance: All statutory accounts and confirmation statements are filed on time, reflecting sound governance and regulatory compliance.
• Shareholder equity: Shareholders’ funds are positive (£55.3k), suggesting the company is solvent with sufficient capital backing.

4. Due Diligence Notes:

• Review the nature and terms of director advances to assess any potential impact on cash flows and financial independence.
• Monitor business plans and revenue generation strategies, especially given the diverse SIC codes, to confirm operational focus and sustainability.
• Confirm the ongoing compliance with micro-entity accounting standards and whether audit exemptions remain appropriate as the company grows.
• Evaluate market position and client engagement in the education and consultancy sectors to assess operational viability.