GLOWPORIUM LTD

Executive Summary

Glowporium Ltd is a newly formed micro-entity with minimal net assets and negative working capital, indicating significant liquidity and solvency risks. While compliance and ownership clarity are positive, the lack of financial resilience and short operational history present material concerns for investors. Further investigation into cash flow management and business viability is recommended before considering investment.

GLOWPORIUM LTD - Analysis Report

Company Number: 14680855

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated (less than two years old) with minimal net assets (£4) and a negative net current asset position of £614. The very low level of current assets relative to current liabilities raises immediate concerns about liquidity and short-term solvency. The business appears to have only one employee and limited fixed assets, which may constrain operational stability.

2. Key Concerns:

• Liquidity risk: Current liabilities (£898) exceed current assets (£284), resulting in negative net current assets, indicating potential difficulties in meeting short-term obligations as they fall due.
• Minimal equity buffer: Shareholders’ funds are extremely low (£4), providing almost no cushion against operational losses or unexpected expenses.
• New business with limited financial track record: Incorporated in February 2023, the company has a very short operating history, making it difficult to assess sustainable revenue generation or profitability.

3. Positive Indicators:

• Compliance is up to date: No overdue filings for accounts or confirmation statements, suggesting good governance and regulatory compliance so far.
• Clear ownership and control: One director and sole shareholder controls the company, simplifying decision-making and accountability.
• Niche market presence: Operates in specialized beauty and cosmetic services (SIC 96020 and 96090), potentially targeting a premium segment as implied by website branding, which may support future growth.

4. Due Diligence Notes:

• Verify the company’s cash flow projections and working capital management plans to understand how it intends to cover current liabilities.
• Investigate the nature and timing of current liabilities to determine if any are overdue or if payment terms are manageable.
• Assess the business model robustness, including customer base, contracts, and revenue streams, given limited financial history.
• Review director’s background and financial commitments to ascertain capacity to support the company if needed.
• Confirm no contingent liabilities or undisclosed debts exist that could worsen financial position.