Company Number: 13820454

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   Despite showing a turnaround in profitability for the latest year, Ignition Global Ltd exhibits signs of ongoing financial strain historically, including net liabilities and reliance on director loans. The company is solvent currently but remains reliant on related-party funding, which elevates risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has net liabilities of £366 as of 2024-09-30, although this is a marked improvement from prior years. Persistent negative net equity indicates prior accumulated losses and potential solvency vulnerability.
• Substantial Director Loan Account: Creditors due after more than one year consist entirely of a significant director loan (£19,014 in 2024, up from £15,620 in 2023), evidencing dependency on related-party funding rather than external financing or operational cash flow to meet obligations.
• Limited Operational Scale and Resources: The company employs only one person (the director) and has minimal fixed assets and working capital. This could constrain operational scalability and resilience against market or business interruptions.

3. Positive Indicators:

• Recent Profitability Improvement: The company reported a profit of £4,749 in the latest financial year compared to prior losses, suggesting a potential turnaround in operational performance.
• Strong Liquidity Position: Cash balances increased significantly from £9,187 to £17,695, and current assets exceed current liabilities, indicating sufficient short-term liquidity to meet immediate obligations.
• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date with no overdue filings, reflecting sound regulatory compliance.

4. Due Diligence Notes:

• Confirm Sustainability of Profitability: Investigate the drivers behind the recent profit improvement and assess whether this is sustainable or linked to one-off factors.
• Evaluate Director Loan Terms: Clarify the terms, repayment schedule, and conditions of the director loan to understand financial risk and possible future cash flow impacts.
• Assess Business Model and Market Position: Given the small scale and limited asset base, review the company’s business model robustness, client base, and growth prospects within its HR and employment placement activities.
• Review Going Concern Assumptions: Although management states no material uncertainties, verify assumptions underlying the going concern basis, especially considering the historical losses and reliance on director funding.