Company Number: 14034504

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: LOW

Varshon Limited demonstrates a solid financial footing with positive net current assets and shareholders’ funds across its two years of operation. The company maintains up-to-date statutory filings with no overdue accounts or confirmation statements. Its micro-entity status limits disclosure requirements but available data indicates low immediate solvency or liquidity concerns.

2. Key Concerns:

• Declining Net Current Assets and Shareholders’ Funds: The net current assets declined from £94,296 in 2023 to £71,905 in 2024, and equity fell from £95,186 to £72,976, suggesting some erosion of working capital that warrants monitoring.
• Single Director and Shareholder Control: Mr. Richard John Stokes is the sole director and majority shareholder with full control, which could pose governance risks and lack of oversight.
• Limited Operating History and Scale: Incorporated in 2022, with one employee and micro-entity classification, the company’s small scale and short track record could limit operational resilience and growth prospects.

3. Positive Indicators:

• Strong Liquidity Position: Current assets (£91k) significantly exceed current liabilities (£19k), providing a comfortable short-term liquidity cushion.
• Up-to-date Compliance: No overdue statutory filings; accounts and confirmation statements are timely, reducing regulatory risk.
• Positive Net Worth: Shareholders’ funds remain positive and substantial relative to company size, indicating solvency.

4. Due Diligence Notes:

• Verify the nature of current assets, especially the composition of cash and receivables, to assess liquidity quality.
• Review director’s report or management commentary (if available) for insights on the business model, revenue sources, and plans to address declining net assets.
• Confirm there are no related party transactions or contingent liabilities that could impact financial stability.
• Consider governance structure and controls given sole director/shareholder situation.
• Monitor future filings for trends in financial performance and capital structure.