GUGS MAHI LIMITED

Executive Summary

GUGS MAHI LIMITED is a recently established private limited company showing significant solvency and liquidity risks as reflected in its negative net assets and limited cash reserves. While compliance with statutory filings is maintained and governance appears straightforward, the operational sustainability remains uncertain due to a lack of employees and unclear revenue generation. Further due diligence on financial forecasts and creditor arrangements is recommended to clarify the company’s viability.

GUGS MAHI LIMITED - Analysis Report

Company Number: 14779219

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £12,733 and negative shareholders' funds. Current liabilities exceed current assets, resulting in negative net current assets, indicating liquidity issues. The business is newly incorporated with no employees and limited operational history, which heightens operational risk.

2. Key Concerns:

• Solvency Risk: Net liabilities of £12,733 and negative equity indicate the company is currently insolvent on a balance sheet basis.
• Liquidity Concerns: Cash balance is only £398 against current liabilities of £1,612, suggesting an inability to meet short-term obligations without new funding.
• Operational Stability: No employees and minimal asset base, combined with a lack of turnover or profit data, raise questions about sustainable business operations and revenue generation.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings with no overdue filings or penalties.
• Clear Ownership and Governance: Single director and 100% owner identified with no apparent disqualifications or compliance issues.
• Industry Classification: Management consultancy can be a low capital-intensive business, which may allow for scalability with limited fixed assets.

4. Due Diligence Notes:

• Investigate business model viability given the negative equity and minimal cash position.
• Request detailed management accounts or cash flow forecasts to assess going concern status and funding plans.
• Clarify the nature of the £11,519 creditor due after one year, which significantly impacts solvency metrics.
• Confirm whether there is any turnover, contracts, or signed client agreements to support future revenue.
• Assess director’s plans for capital injection or loan facilities to sustain operations.