INVENTING X LTD
Executive Summary
Inventing X Ltd operates as a micro-entity holding company with minimal financial substance, reflected in its static equity of £100 and lack of profit and loss disclosures. While compliant with filing requirements, the absence of operational and financial detail combined with sole director control raises significant solvency and governance risks. Further financial and operational information is essential to form a comprehensive risk assessment.
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This analysis is opinion only and should not be interpreted as financial advice.
INVENTING X LTD - Analysis Report
Risk Rating: HIGH
Justification: The company shows minimal financial substance with static, nominal shareholders' funds (£100) over four years and no detailed financial performance data. As a holding company with a single director/shareholder, it lacks operational complexity or evidence of revenue generation, indicating a high risk of insolvency or inability to meet obligations if liabilities arise.Key Concerns:
- Extremely Limited Financial Information: The accounts omit profit and loss details, preventing assessment of profitability and cash flows.
- Minimal Equity Base: Share capital and reserves remain at £100 since incorporation, suggesting no capital infusion or retained earnings to support operations or liabilities.
- Single Person Control and Director: Complete control by one individual increases governance risk and potential concentration risk without independent oversight.
- Positive Indicators:
- Timely Compliance: The company has no overdue filings for accounts or confirmation statements, indicating adherence to statutory obligations.
- Active Status: The company remains active with no indication of liquidation, administration, or insolvency proceedings.
- Micro-entity Reporting: Compliance with simplified reporting standards appropriate for its size reduces complexity and filing burden.
- Due Diligence Notes:
- Request full financial statements including profit and loss accounts and cash flow statements to assess operational viability and liquidity.
- Investigate the nature and extent of underlying assets or investments held as a holding company to clarify value and solvency position.
- Review director background and any potential related-party transactions given sole control and shareholding.
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