CEREBRUM LABS LTD

Executive Summary

Cerebrum Labs Ltd is a newly formed micro-entity with minimal financial resources and an extremely tight liquidity position. While the company is compliant with statutory filing requirements, lack of operational data and negligible net assets pose a high solvency risk. Further due diligence on business viability and director capability is essential before investment consideration.

CEREBRUM LABS LTD - Analysis Report

Company Number: 14673915

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: HIGH
   The company shows extremely limited financial resources with net assets of just £1 and cash of £2,363 nearly equal to current liabilities. As a newly incorporated entity with minimal operational history and no revenue or profit figures disclosed, the risk of insolvency or inability to meet obligations is significant.

2. Key Concerns:

• Insufficient Working Capital: Net current assets of £1 indicate a fragile liquidity position, meaning the business barely covers short-term liabilities.
• Lack of Operational Data: No profit and loss account filed; absence of revenue, expenses, or cash flow details prevents assessment of business sustainability.
• Single Director/Shareholder Control: Sole control by Mr. Liam Hale may concentrate risk and limit governance oversight.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance.
• Small Company Exemption Utilized: Use of simplified reporting standards (FRS 102 Section 1A) appropriate for micro-entities, reducing administrative burden.
• Clear Corporate Structure: Registered address and director information are transparent.

4. Due Diligence Notes:

• Investigate the nature and source of the current liabilities (£2,362) and any contingent liabilities not disclosed in accounts.
• Review any business plans, contracts, or pipeline to assess potential revenue generation.
• Confirm if the company has any external financing arrangements or shareholder loans supporting liquidity.
• Assess director’s background and capacity to sustain operations given sole control and occupation as a solicitor (possible limited management experience in the gaming sector).
• Clarify reasons for absence of profit and loss filing and obtain management accounts if available.