MAGMA WEALTH GROUP LIMITED

Executive Summary

Magma Wealth Group Limited is a newly formed holding company with a strong equity base and no overdue compliance filings. Its financial position is currently underpinned by a single significant investment generating dividend income, with no operational turnover reported. While the company shows low immediate risk, careful analysis of its joint venture’s performance and liquidity management is recommended to confirm ongoing stability.

MAGMA WEALTH GROUP LIMITED - Analysis Report

Company Number: 15218750

Analysis Date: 2025-07-29 16:50 UTC

1. Risk Rating: LOW
   The company is newly incorporated and classified as a holding company with a significant investment in a joint venture. Financial data indicates positive net assets and no overdue filings, with profits generated from investment income rather than operational turnover. This suggests limited operational risk and no immediate solvency concerns.

2. Key Concerns:

• Lack of operational turnover: The company reports zero turnover from operations, relying solely on dividend income from its joint venture, which may limit cash flow diversification.
• Small cash reserves: Cash at bank is modest (£29,225), which could constrain liquidity if demands arise outside of dividend inflows.
• Concentration risk: The company’s value is primarily tied to a single investment (£1,000,000), exposing it to risks related to the performance of the joint venture.

3. Positive Indicators:

• Strong shareholders’ funds: Equity stands at £1,036,475, reflecting a solid capital base relative to liabilities.
• No overdue filings: Both accounts and confirmation statement filings are up to date, indicating good regulatory compliance.
• Experienced management: Six directors are appointed at incorporation, which may indicate a well-structured governance framework from inception.

4. Due Diligence Notes:

• Review the financial health and prospects of the joint venture (Magma Wealth Management Limited), including the sustainability of dividend payments.
• Confirm the nature of the investment valuation and any potential impairment risks.
• Assess cash flow forecasts and liquidity plans, especially given the absence of operational turnover.
• Verify director backgrounds and any potential conflicts given the shared office address and related-party transactions.