GEES MAGIC HANDS LTD

Executive Summary

GEES MAGIC HANDS LTD is a recently incorporated micro-entity with an active status but demonstrates clear financial distress, notably negative net assets and working capital deficits. While regulatory compliance appears satisfactory, the lack of operational activity and sole director/shareholder structure present material risks. Further inquiry into the company’s business viability and plans to remediate its financial position is recommended before considering investment.

GEES MAGIC HANDS LTD - Analysis Report

Company Number: 14120851

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities of £2,292 and negative working capital as of the latest financial year. The absence of turnover and employee engagement, coupled with a loss-making position, increases the risk profile.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net liabilities increased from £81 in 2023 to £2,292 in 2024, with current liabilities exceeding current assets by £1,092, indicating a weak liquidity position and potential inability to meet short-term obligations.
• No Operational Activity Evident: The company reports zero employees and minimal current assets (only £42), suggesting little or no trading activity or revenue generation to support ongoing operations.
• Reliance on a Single Director and Shareholder: The sole director and 100% shareholder is the same individual, which raises governance concerns, including limited oversight and potential concentration risk.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date and not overdue, indicating no immediate regulatory compliance issues.
• Micro-entity Status: Limits complexity and filing burdens, consistent with current scale of operations.
• No Indication of Insolvency Proceedings: The company is active with no liquidation or administration status reported.

4. Due Diligence Notes:

• Investigate the nature of the liabilities and whether they are payable imminently or subject to restructuring.
• Clarify the business model and revenue generation plans, given the lack of turnover and zero employees reported.
• Review the director’s plans for capital injection or operational development to address negative equity.
• Assess any intercompany or related party transactions that may impact the financial position.
• Confirm absence of contingent liabilities or ongoing disputes that may exacerbate financial risk.