Company Number: 14760271

Analysis Date: 2025-07-19 12:05 UTC

1. Risk Rating: LOW

Justification: Butch FX Ltd is a newly incorporated private limited company with its first full financial year completed. The company shows positive net assets and net current assets, no overdue filings, and sole control by a single director/shareholder. The scale and financial activity are limited but appear sound and compliant at this early stage.

2. Key Concerns:

• Limited operating history: Incorporated in March 2023 with only one year of accounts, making it difficult to assess long-term sustainability or trading performance.
• Scale of operations is very small: Total assets under £21k and net assets around £12.7k limit the company’s financial flexibility and ability to absorb shocks.
• Reliance on a single director and shareholder: Concentration risk exists if this individual becomes incapacitated or disengaged.

3. Positive Indicators:

• Positive net current assets (£8,015) and net assets (£12,683) indicate the company is solvent with working capital coverage.
• No overdue accounts or confirmation statements suggest good compliance and governance practices.
• Detailed accounting notes and professional accountant involvement indicate proper financial record keeping.
• Cash balance (£14,922) represents a solid portion of current assets, supporting liquidity.

4. Due Diligence Notes:

• Review the nature, terms, and duration of contracts or services underpinning turnover to assess revenue sustainability.
• Monitor cash flow statements and projected budgets to confirm liquidity beyond the balance sheet snapshot.
• Investigate director’s background and capacity given the sole control and responsibility for operations.
• Assess any contingent liabilities or off-balance sheet commitments that may impact solvency.
• Confirm business model viability given the niche SIC codes related to support activities to performing arts and specialised design.