ELEGANT ENHANCEMENTS LTD

Executive Summary

Elegant Enhancements Ltd is a recently formed micro-entity operating in specialist medical practice with current net liabilities and negative working capital, reflecting a high short-term solvency risk. While compliant with filing requirements and under sole director control, the company's lack of assets and operational history warrant close scrutiny of its liquidity and business viability. Further due diligence is recommended to understand its funding and strategic outlook.

ELEGANT ENHANCEMENTS LTD - Analysis Report

Company Number: 14639976

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   The company shows net liabilities of £4,932 with negative net current assets, indicating immediate solvency concerns. The company is newly incorporated (2023) and has yet to demonstrate operational stability or profitability.

2. Key Concerns:

• Negative net current assets and net liabilities suggest insolvency risk and inability to meet short-term obligations without additional financing.
• Absence of fixed assets or positive working capital limits operational flexibility and cash flow resilience.
• The director is also the sole shareholder controlling 75-100% of shares, which may concentrate governance risk without independent oversight.

3. Positive Indicators:

• The company is compliant with filing requirements with no overdue accounts or confirmation statements, indicating good regulatory compliance so far.
• The director has acknowledged responsibility and the accounts have been approved and signed properly.
• Operating as a micro-entity reduces reporting burden and may indicate a lean operational structure.

4. Due Diligence Notes:

• Investigate the nature and source of current liabilities (creditors) and whether these are trade creditors or related party loans.
• Review cash flow projections or funding plans to assess how the company intends to address the negative working capital position.
• Clarify the business plan and revenue generation timeline considering the company’s recent incorporation and apparent lack of assets.
• Confirm the director’s financial backing or external support if any, especially given the lack of other directors or shareholders.
• Monitor future filings for any material changes in financial position or governance structure.