SHASONIC LIMITED

1. Risk Rating: LOW

Based on the available data, Shasonic Limited presents low solvency and liquidity risk from a balance-sheet perspective. The company holds substantial net assets (£1.58m), very low short-term creditors (£6.8k), and shows no evidence of overdue filings or adverse company status. However, this rating is based primarily on the strength of the balance sheet, as the extract does not include a profit and loss account, cash flow statement, or detailed notes.

2. Key Concerns

1. Limited operating transparency
   As a micro-entity, the company files a filleted balance sheet only. No turnover, profit, margin, or cash flow information is available in the provided data. It is therefore not possible to assess earnings quality, profitability, or cash generation capacity.

2. Concentrated control and key-person risk
   Xxxxxx Xxxxxxxxname shown to subscribers owns more than 75% of the company's shares and voting rights. There is no indication of independent board oversight. This concentration creates potential related-party risk and dependence on a single individual for strategic direction.

3. Opaque asset composition and static accruals
   Current assets total £1.73m, but the breakdown between cash, debtors, and stock is not disclosed. Additionally, accruals and deferred income have remained constant at £142,976 across two years. Without further disclosure, it is unclear whether this is deferred revenue, a recurring cost accrual, or a longer-term liability.

3. Positive Indicators

• Strong balance sheet: Net assets of £1.58m provide a significant buffer against losses.
• Minimal short-term liabilities: Creditors due within one year are only £6,829, indicating very low debt pressure.
• Stable net asset position: Net assets have remained broadly stable between roughly £1.5m and £1.7m over the past decade.
• Good filing compliance: Accounts are filed, no overdue filings are indicated, and the company is up to date with its confirmation statement obligations.
• Long operating history: Incorporated in 1993, the company has remained active for over 30 years.

4. Due Diligence Notes

• Obtain full annual accounts, including the profit and loss account, to assess revenue, profitability, and dividend policy.
• Request management accounts and bank statements to confirm the composition and quality of current assets, particularly the cash position.
• Investigate the £142,976 accruals and deferred income balance to determine its nature and whether it represents an ongoing obligation.
• Review related-party transactions, including director and shareholder loans, to ensure they are conducted on arm's length terms.
• Search the Companies House register for charges, mortgages, county court judgments, or other legal encumbrances.
• Confirm the company's principal activity and SIC code to better understand its business model and sector-specific risks.

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