GOLD MOUNTAIN LABS LTD

Executive Summary

Gold Mountain Labs Ltd is a newly established micro-entity showing a healthy liquidity and equity position with no compliance issues to date. However, its limited operational history and concentrated ownership structure warrant cautious monitoring. Further due diligence on business sustainability and governance is advisable before investment.

GOLD MOUNTAIN LABS LTD - Analysis Report

Company Number: 14637123

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: LOW
   The company demonstrates solid net asset backing relative to liabilities, no overdue filings, and a clean regulatory compliance profile. Its financial position at this early stage reflects adequate working capital and equity support without evidence of distress.

2. Key Concerns:

• Limited operating history: Incorporated in February 2023, the company has just over one year of trading, which limits visibility on operational performance and stability.
• Micro-entity status with limited disclosure: Financial statements prepared under micro-entity provisions provide minimal detail, restricting thorough financial and operational analysis.
• Single director and majority controller: Mr. Morrison holds significant control (50-75% shares and voting rights) and is the sole director, which may concentrate decision-making risk and governance oversight.

3. Positive Indicators:

• Strong liquidity position: Current assets of £70,820 against current liabilities of £4,773 yield net current assets of £66,047, indicating good short-term liquidity.
• Positive net assets and shareholder funds (£64,694): The company’s equity position provides a buffer against liabilities and suggests capital adequacy.
• No overdue filings or regulatory issues: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Employment of 3 persons: Early indication of operational activity and capacity to deliver services aligned with its software development classification.

4. Due Diligence Notes:

• Verify the nature and sustainability of revenue streams and business model, given the early stage and software development industry risks.
• Review any off-balance-sheet liabilities or contingent obligations not disclosed in micro-entity accounts.
• Assess director’s background and governance practices, given concentration of control and responsibility in a single individual.
• Confirm cash flow trends and funding sources to support ongoing operations and growth plans.
• Investigate client base, contracts, and market positioning to evaluate operational stability and future prospects.