IDENTITY MOVEMENT LTD

Executive Summary

Identity Movement Ltd is a recently formed private company with ongoing negative net assets and net current liabilities, indicating a high risk of insolvency and liquidity difficulties. While compliance with filing obligations is current and governance centralized, the financial position raises concerns about operational sustainability without further capital or revenue growth. Further detailed financial and operational due diligence is recommended to assess viability and risk mitigation prospects.

IDENTITY MOVEMENT LTD - Analysis Report

Company Number: 13805018

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and shareholders’ funds for three consecutive years, indicating persistent losses and erosion of equity. This raises significant solvency and liquidity concerns.

2. Key Concerns:

• Solvency: Net liabilities increased from £119 to £239 over two years, implying the company’s liabilities exceed its assets and the business is technically insolvent.
• Liquidity: Negative net current assets reveal insufficient short-term assets to cover current liabilities, which could impede meeting obligations as they fall due.
• Operational Sustainability: The company has made no visible profit and has only minimal assets; without clear revenue or capital injections, continuing operations may be challenging.

3. Positive Indicators:

• Compliance: The company has filed accounts and confirmation statements on time, with no overdue filings or penalties noted.
• Control: A single shareholder/director with full control may simplify decision-making and facilitate quicker strategic responses.
• Growth Potential: Recent incorporation (Dec 2021) suggests the company is in early stages; losses may reflect start-up phase investments.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements to understand revenue streams, expenses, and cash burn rate.
• Investigate the nature and cause of liabilities and whether they are trade creditors, loans, or other obligations.
• Assess director’s plans for capital injection, business development, or restructuring to return to profitability.
• Confirm absence of any director disqualifications or regulatory actions against the company or its controller.
• Understand the business model under SIC 85590 (Other education not elsewhere classified) and market positioning.