Company Number: 13711793

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   Lovewish Limited exhibits a high risk profile primarily due to its persistent negative net current assets and shareholders’ funds, indicating solvency challenges and potential difficulty meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company’s net current liabilities increased from £3,175 in 2022 to £5,119 in 2023, showing worsening liquidity and potential cash flow strain.
• Negative Shareholders’ Funds: The accumulated losses reflected in retained earnings have deteriorated shareholders’ equity from -£3,176 to -£5,120, highlighting ongoing operational losses or insufficient capital injection.
• Limited Financial Disclosure: The company filed unaudited abridged accounts with no income statement or detailed profit and loss data, restricting visibility into revenue generation and expense management.

3. Positive Indicators:

• Timely Filings: The company is current with both its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Increasing Cash Balance: Cash at bank significantly improved from £816 in 2022 to £11,316 in 2023, which may provide some short-term liquidity buffer.
• Ownership and Control: The sole director and 75-100% shareholder is an identifiable individual, which may simplify governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the company’s revenue streams, profitability, and business model sustainability given the absence of detailed income statement data.
• Assess the nature and timing of current liabilities to understand if they are trade creditors, loans, or other financial obligations and their impact on liquidity.
• Review any funding arrangements or capital injection plans from the sole shareholder to support solvency.
• Evaluate the business plan and market positioning in its industry sectors (artistic creation, software development, and publishing) for growth prospects and operational risks.