EQUITABLE LTD.

Executive Summary

Equitable Ltd. is a recently formed micro private limited company showing a weak financial position with minimal net assets and negative working capital. While regulatory compliance is current, the absence of employees and limited financial data raise concerns about operational viability and liquidity. Further investigation into business activities and cash flows is essential to validate the company’s sustainability and ability to meet obligations.

EQUITABLE LTD. - Analysis Report

Company Number: 14719657

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: HIGH
   Justification: Equitable Ltd. is a newly incorporated micro-entity with minimal net assets (£21) and net current liabilities (-£559), indicating an immediate working capital deficit. The company has no employees and operates in public relations, a service sector that generally requires active business operations and client engagement, which is not evidenced here. The financials reflect a fragile financial position with no apparent operational scale to support solvency or liquidity.

2. Key Concerns:

• Negative net current assets: Current liabilities exceed current assets by £559, suggesting potential short-term liquidity issues.
• Extremely low net assets and shareholders’ funds (£21), implying minimal financial buffer or capital to absorb losses.
• Lack of employees and limited operational data: The company’s sustainability and ability to generate revenue remain unclear, raising questions about operational viability.

3. Positive Indicators:

• Compliance status: The company is active with up-to-date filings, including annual accounts and confirmation statements, indicating good regulatory compliance so far.
• Ownership and control are consolidated under a single director and shareholder, which may simplify decision-making and strategic direction.
• Micro-entity classification allows for simplified reporting, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and scope of the company’s operational activities since incorporation, including client contracts or revenue streams, to assess business sustainability.
• Review cash flow and bank statements to confirm liquidity beyond the snapshot provided by the balance sheet.
• Confirm any related party transactions or financial support from the sole director or external parties that may not be reflected in the accounts.
• Assess plans for capital injection or business development to improve working capital and solvency.