FOREVER AI LIMITED

Executive Summary

Forever AI Limited, a recently incorporated private advertising agency, shows a healthy initial financial position with positive net assets, retained earnings, and sufficient liquidity. The company demonstrates good compliance with filing deadlines and clear ownership structure. However, limited operating history and modest working capital warrant close monitoring of future financial performance and cash flow stability.

FOREVER AI LIMITED - Analysis Report

Company Number: 15219259

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: LOW
   Forever AI Limited is a newly incorporated company (October 2023) with its first set of accounts filed timely and showing a positive net asset position and retained earnings. There are no overdue filings or indications of regulatory non-compliance. The company maintains positive net current assets and shareholders’ funds, suggesting initial financial stability.

2. Key Concerns:

• Limited Operating History: The company has only one financial year of data, limiting the ability to assess operational sustainability and long-term financial performance.
• Modest Working Capital: While net current assets are positive (£10,966), the current liabilities (£22,942) relative to cash (£33,346) and debtors (£562) are modest, indicating limited liquidity buffer if unexpected demands arise.
• Director’s Loan Account: There is a £1,000 director’s loan payable after one year which, while small, should be monitored to ensure it does not increase or affect cash flow.

3. Positive Indicators:

• Positive Net Assets and Retained Earnings: The company reports net assets of £9,966 and retained earnings of £9,866, indicating profitability in its first period.
• Timely Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good governance and regulatory compliance.
• Single Shareholder Control: Miss Vera Lucia Almeida Azevedo controls 75-100% of shares and voting rights, providing clear and stable ownership and decision-making structure.
• Adequate Cash Position: Cash at bank of £33,346 exceeds current liabilities of £22,942, indicating the company has sufficient liquid assets to meet short-term obligations.

4. Due Diligence Notes:

• Investigate the company’s business model, revenue streams, and client base given the limited history and the SIC code classification as an advertising agency.
• Review the director's loan account for any changes, terms, and potential impact on solvency or cash flow.
• Monitor future financial filings for growth trends, profitability sustainability, and any increase in liabilities or delayed payments.
• Confirm the absence of any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Assess the impact of the company’s size exemption on financial statement disclosures to ensure no critical information is omitted.