Company Number: 12660093

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

1. Risk Rating: LOW
   AKDBJ Limited demonstrates solid net current assets and shareholders' funds with no overdue filings or indications of financial distress. The company maintains positive working capital and appears compliant with filing requirements, suggesting low immediate risk.

2. Key Concerns:

• Limited Business Scale: As a micro-entity with only two employees and minimal fixed assets, the company may have limited operational scale and diversification, which could impact resilience to market fluctuations.
• Relatively Low Share Capital: Share capital at £2.00 is nominal, though common in micro private companies, it indicates minimal equity buffer.
• Narrow Industry Classification: The SIC codes include "Other sports activities" and "Defence activities," which may imply niche operations with potential regulatory or market-specific risks needing further clarity.

3. Positive Indicators:

• Strong Liquidity Position: Current assets (£109,644) significantly exceed current liabilities (£11,232) as of 31 March 2024, yielding net current assets of £98,412, reflecting good short-term liquidity.
• Consistent Growth in Equity: Shareholders’ funds increased steadily from £14,232 in 2020 to £98,056 in 2024, indicating accumulation of retained earnings or capital contributions and improving financial strength.
• On-Time Compliance: No overdue accounts or confirmation statements, demonstrating sound corporate governance and regulatory compliance.

4. Due Diligence Notes:

• Revenue and Profitability Metrics: Absence of profit and loss data limits assessment of operational sustainability—request detailed income statements to evaluate profitability and cash flow trends.
• Nature and Scale of Operations: Clarify business activities related to the SIC codes, especially the mix of sports and defence activities, to understand revenue sources and potential regulatory exposures.
• Director Backgrounds: Both directors share the same address and occupation (consultants); verify their experience and any potential related-party transactions.
• Debt Structure and Off-Balance Sheet Liabilities: Review any contingent liabilities or commitments not disclosed in the micro-entity accounts.
• Future Funding Plans: Investigate if additional capital injections or financing arrangements are anticipated to support growth or operational needs.