ELEMENT HUB LIMITED

Executive Summary

Element Hub Limited is a newly established architectural services company with modest equity but a small working capital deficit and reliance on director loans. While current cash and compliance records are positive, liquidity and operational sustainability remain key risks to monitor. Further due diligence on funding arrangements and business prospects is recommended before investment consideration.

ELEMENT HUB LIMITED - Analysis Report

Company Number: 14720622

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: MEDIUM
   Element Hub Limited shows a modest net asset position shortly after incorporation, but the slight net current liabilities and director loan reliance introduce some solvency and liquidity concerns typical of a start-up phase company.

2. Key Concerns:

• Net current liabilities of £1,650 indicate a working capital deficit, suggesting short-term liquidity pressure.
• Director loans of £48,351 constitute the majority of current liabilities, reflecting dependence on related-party funding which may not be sustainable long-term.
• The company is newly incorporated (March 2023) with only one employee and limited trading history, raising uncertainty over operational stability and future cash flow generation.

3. Positive Indicators:

• Positive net assets of £6,482 show initial equity funding and some buffer above liabilities.
• Cash holdings of £47,301 are close to current liabilities, indicating some ability to meet immediate obligations.
• The company has complied with filing requirements timely, with no overdue accounts or confirmation statements, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Review the nature and terms of the director loans to assess repayment risk and potential encumbrances.
• Evaluate the company's business plan, revenue streams, and cash flow projections to understand operational viability.
• Investigate the extent of client contracts or pipeline in architectural activities (SIC 71111) to gauge sustainability and growth prospects.
• Confirm no related-party transactions or potential conflicts exist beyond director loans.
• Monitor future filings for signs of financial deterioration or improvement.