FOR GOOD (REC) LTD
Executive Summary
FOR GOOD (REC) LTD is an early-stage micro-entity with no turnover to date and a significant net loss resulting in negative equity. The company faces high solvency and liquidity risks primarily due to substantial long-term liabilities and lack of operating revenue. While regulatory filings are up to date, investors should be cautious pending further clarity on funding, creditor arrangements, and business viability.
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This analysis is opinion only and should not be interpreted as financial advice.
FOR GOOD (REC) LTD - Analysis Report
Risk Rating: HIGH
The company exhibits significant solvency and liquidity concerns, with negative net assets of £41,540 and substantial long-term creditors (£43,643) exceeding total assets. The absence of turnover and a loss of £41,541 in its first accounting period highlights operational instability.Key Concerns:
- Negative shareholders’ funds and net assets indicating insolvency risk.
- High creditor balances due after more than one year, which may pressure cash flows.
- No revenue generated to date, suggesting unproven business operations and sustainability concerns.
- Positive Indicators:
- Timely filing of accounts and confirmation statements, indicating regulatory compliance.
- Single director who is also the sole shareholder, which may simplify decision-making and accountability.
- Micro-entity status reduces filing complexity and costs in early stage.
- Due Diligence Notes:
- Investigate nature and terms of the £43,643 long-term creditors to assess repayment risk.
- Assess the business plan and timeline to revenue generation to evaluate operational viability.
- Review director’s plans for capital infusion or securing additional funding to address negative equity and loss.
- Confirm no undisclosed related party transactions or contingent liabilities exist.
- Validate accuracy and completeness of the micro-entity accounts given the negative net asset position.
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