EVERYTHING'S R US LTD
Executive Summary
Everything's R Us Ltd, a newly incorporated micro private limited company, presents high investment risk primarily due to its negative net asset position and lack of operational activity evidenced by zero employees. While regulatory filings are up to date, the company’s financial foundation is weak, warranting close scrutiny of its business viability and director oversight before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
EVERYTHING'S R US LTD - Analysis Report
Risk Rating: HIGH
The company shows immediate solvency concerns with net current liabilities, negative net assets, and no employees, suggesting limited operational activity and financial resources. Being a micro-entity in its first year with minimal asset base raises significant risk regarding its ability to meet obligations.Key Concerns:
- Negative net current assets (£-55) and net liabilities indicate the company’s current liabilities exceed its current assets, presenting a solvency risk.
- Zero employees and no reported profit or turnover suggest the business may not be operationally sustainable at this stage.
- Single director with full control may raise governance and oversight concerns; limited transparency due to micro-entity reporting exemptions.
- Positive Indicators:
- The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance so far.
- Ownership and control are consolidated, which may facilitate decision-making agility in early-stage ventures.
- The company operates within a retail segment focused on mail order and internet sales, a sector with potential for scalable growth.
- Due Diligence Notes:
- Investigate the company’s business plan, revenue projections, and cash flow forecasts to assess operational viability.
- Confirm whether any related party loans or capital injections support the negative net asset position.
- Review director’s background and any potential conflicts of interest or prior directorships to assess governance risks.
- Clarify the reason for net liabilities and whether there are imminent creditor payments that could trigger enforcement action.
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