Company Number: NI691849

Analysis Date: 2025-07-29 17:12 UTC

1. Risk Rating: HIGH
   Given the current financial position showing net liabilities of £68,766 and a large imbalance between current assets (£6,152) and current liabilities (£906,117), the company faces significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are negative (£-68,766), indicating that liabilities exceed assets, which is a critical solvency red flag.
• Severe Working Capital Deficit: Current liabilities vastly exceed current assets by approximately £900,000, suggesting immediate liquidity issues and potential inability to meet short-term obligations.
• Limited Operational History and Scale: Incorporated in October 2022 with micro-entity reporting and only two employees, the company’s operational stability and business sustainability remain unproven, especially given the financial strain.

3. Positive Indicators:

• Unqualified Audit Report: The accounts were audited with an unqualified opinion, which supports the accuracy and compliance of the financial reporting.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating good regulatory compliance and governance practices.
• Ownership and Control Concentrated: A single entity, Mcmu Holdings Ltd, controls 75-100% of shares and voting rights, which may facilitate decisive management actions.

4. Due Diligence Notes:

• Review Nature of Current Liabilities: Investigate the composition and maturity of the £906,117 current liabilities to understand the immediate cash outflow requirements.
• Examine Cash Flow and Profitability Details: Since the profit and loss account is omitted, request underlying income statement and cash flow data to assess operational performance and financing activities.
• Assess Asset Valuation: Confirm the valuation and liquidity of fixed assets (£831,199) to determine if these can be leveraged or sold to improve solvency.
• Evaluate Directors’ Plans: Obtain management’s strategic plans or forecasts to address the financial deficit and liquidity issues.
• Check Related Party Transactions: Given common addresses and significant control by Mcmu Holdings Ltd, assess any related party transactions or loans impacting financial position.