Company Number: NI677806

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: LOW
   Maghereagh Paints Limited demonstrates a solid financial position with positive net current assets and net assets increasing steadily over the reported years. The company is compliant with filings, not overdue on accounts or confirmation statements, and operates with a minimal but consistent employee base. There are no signs of insolvency or regulatory non-compliance.

2. Key Concerns:

• Limited scale of operations with only one employee, which may pose operational risks if key personnel are unavailable.
• Tangible fixed assets have declined, which might indicate limited investment in physical infrastructure or asset base.
• Absence of profit & loss account disclosure restricts a full understanding of income, expenses, and profitability trends.

3. Positive Indicators:

• Strong liquidity position evidenced by substantial net current assets (£90,938) and healthy cash balance (£17,537) at the latest year-end.
• Consistent growth in net assets and shareholders’ funds from £32,616 in 2021 to £93,668 in 2024, suggesting retained earnings accumulation and financial stability.
• Compliance with Companies House filing deadlines, with no overdue accounts or confirmation statements, reflecting good governance and regulatory adherence.

4. Due Diligence Notes:

• Review detailed profit & loss statements or management accounts to assess operational profitability and cash flow dynamics.
• Investigate the nature of debtors (£82,516) to ensure timely collection and low credit risk exposure.
• Clarify reasons behind the reduction in fixed assets and whether asset management aligns with the business strategy.
• Confirm whether any contingent liabilities or off-balance-sheet obligations exist that might affect solvency.
• Evaluate business dependency on the sole director and employee for continuity risk.