E&M MOSLEY LTD

Executive Summary

E&M Mosley Ltd, a recently incorporated micro-entity operating in the public house sector, presents immediate financial concerns with negative net current assets and shareholders’ funds as of its first accounts. While regulatory compliance is satisfactory and governance appears sound, the current financial position suggests significant solvency and liquidity risks that require further detailed investigation.

E&M MOSLEY LTD - Analysis Report

Company Number: 14817668

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and shareholders’ funds shortly after incorporation, indicating an immediate solvency concern. Negative equity at this early stage is a significant red flag for financial stability.

2. Key Concerns:

• Negative net current assets of £9,171 imply that current liabilities exceed current assets, raising liquidity issues that could impair meeting short-term obligations.
• Negative shareholders’ funds of £9,172 signal that the company’s liabilities surpass its assets, indicating potential insolvency risk.
• Limited financial history (incorporated April 2023, accounts for first year only) restricts assessment of operational performance and sustainability, adding uncertainty.

3. Positive Indicators:

• The company is compliant with filing deadlines (accounts and confirmation statement not overdue), showing good regulatory compliance.
• Directors are clearly identified with no disqualifications or adverse records, suggesting no immediate governance concerns.
• Operating in the public houses and bars sector (SIC 56302), which can be viable given appropriate management and market conditions.

4. Due Diligence Notes:

• Investigate the nature of the negative net current assets and equity: are these due to initial setup costs, shareholder loans, or operating losses?
• Review cash flow projections and management plans to address current liabilities exceeding assets.
• Obtain further details on revenue generation, profitability, and business model to assess operational sustainability.
• Confirm no contingent liabilities or disputes that could exacerbate financial stress.
• Monitor ongoing compliance and any changes in director status or company filings.