GOOD VIBES GIFTS LTD

Executive Summary

GOOD VIBES GIFTS LTD is a recently incorporated micro-entity with a very limited financial history and minimal equity. The company's current asset position slightly exceeds current liabilities, indicating a tight liquidity position common for start-ups. While compliance with filing requirements is good, investors should closely monitor working capital management and operational performance going forward.

GOOD VIBES GIFTS LTD - Analysis Report

Company Number: SC766250

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: MEDIUM
   The company is very new, incorporated in April 2023, with limited financial history. Its micro-entity accounts show minimal net assets (£144) and current liabilities nearly equal to current assets (£4,612 vs £4,756), indicating a very tight working capital position. While not immediately insolvent, the slim equity buffer and close current asset/liability balance highlight some solvency and liquidity risk typical of early-stage businesses.

2. Key Concerns:

• Minimal Equity Cushion: Shareholders’ funds stand at only £144, which provides very limited financial buffer against losses or unexpected costs.
• Tight Working Capital: Current assets just marginally exceed current liabilities by £144, suggesting potential cash flow constraints if receivables or stock are not converted promptly.
• Limited Operating History: Being less than one year old with only micro-entity accounts filed, there is insufficient financial track record to assess profitability or operational stability.

3. Positive Indicators:

• Compliance and Timely Filings: No overdue accounts or confirmation statements, demonstrating adherence to statutory filing requirements.
• Small Employee Base: With an average of 3 employees, the company likely maintains a low fixed cost base, which may improve flexibility in managing expenses.
• Clear Ownership and Governance: Directors and persons with significant control are clearly identified and have no apparent disqualifications or regulatory issues.

4. Due Diligence Notes:

• Verify the nature and liquidity of current assets to confirm they can cover liabilities in the short term.
• Obtain management accounts or cash flow forecasts to evaluate ongoing liquidity and operational cash generation.
• Investigate the business model and customer base to assess revenue sustainability and growth prospects.
• Confirm the absence of contingent liabilities or related party transactions that could impact solvency.
• Review director backgrounds for any informal issues not apparent in public records.