ESSENTIAL GLOBAL LTD

Executive Summary

ESSENTIAL GLOBAL LTD is a very small, privately controlled management consultancy with limited assets and minimal cash reserves. Its financial position has improved but remains fragile, with liquidity and operational scale as key concerns. Compliance is current, but further review of director loans and business sustainability is advisable before investment.

ESSENTIAL GLOBAL LTD - Analysis Report

Company Number: 13887057

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

1. Risk Rating: MEDIUM
   ESSENTIAL GLOBAL LTD shows modest net assets and positive working capital as of the last financial year, suggesting a currently solvent position. However, the company is very small with minimal operational scale and limited cash balances, which raises medium-level liquidity and operational continuity concerns for investors.

2. Key Concerns:

• Liquidity Cushion is Thin: Cash at £2,971 barely exceeds current liabilities of £2,722, leaving minimal buffer for unexpected expenses or downturns.
• No Employees & Limited Scale: The company operates with zero employees, indicating reliance on the director or contractors, which may impact scalability and sustainability.
• Director Loans and Creditors: Loans from directors (£724) constitute a significant portion of current liabilities, potentially indicating reliance on insider funding rather than external or operational cash flow.

3. Positive Indicators:

• Improved Financial Position: Net assets improved from a negative £172 in 2023 to a positive £569 in 2024, indicating some progress in financial health.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with statutory requirements.
• Clear Ownership Structure: Single beneficial owner with 75-100% shareholding provides clarity of control and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to understand the risk of repayment issues or related party financing concerns.
• Review cash flow forecasts and business plans to assess ability to generate sustainable operating cash flows given the lack of employees and minimal assets.
• Confirm the scope of management consultancy and bookkeeping activities and client base to evaluate operational viability given the small scale.
• Verify whether there are any contingent liabilities or off-balance sheet obligations not disclosed in the abridged accounts.