MAKABO LIMITED

Executive Summary

Makabo Limited is a micro-entity with a strong liquidity position and compliant regulatory status, reflecting low immediate financial risk. However, the decline in net assets and concentrated ownership warrant further investigation to ensure ongoing operational and governance stability. Overall, the company appears financially stable but should be monitored for profitability and governance transparency.

MAKABO LIMITED - Analysis Report

Company Number: SC700102

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: LOW
   Makabo Limited demonstrates a solid net current asset position, positive shareholders’ funds, and timely filing of accounts and confirmation statements. The company operates within micro-entity thresholds, limiting financial complexity and exposure.

2. Key Concerns:

• Declining net assets: Shareholders’ funds have decreased from £85,718 in 2023 to £71,129 in 2024, which could indicate reduced profitability or cash outflows.
• Reliance on a small workforce: Employing only two people may limit operational capacity and scalability, potentially increasing operational risk.
• Concentrated ownership and control: One individual holds 25-50% of shares and voting rights, which may affect governance dynamics and decision-making transparency.

3. Positive Indicators:

• Strong liquidity position: Net current assets of approximately £70,903 in 2024 suggest the company can comfortably cover short-term liabilities (current liabilities of £31,618).
• Compliance with regulatory requirements: No overdue filings for accounts or confirmation statements, indicating good governance and regulatory compliance.
• Stable operational footprint: Consistent employee headcount and asset levels over recent years suggest operational stability.

4. Due Diligence Notes:

• Investigate the reasons behind the reduction in shareholders’ funds and assess profitability trends, including income and expense details not disclosed here.
• Review cash flow statements, if available, to confirm liquidity beyond the balance sheet snapshot.
• Examine governance structure and controls given the significant shareholding concentration, including any related party transactions or risk of director conflicts.
• Confirm the nature of the company’s business activities under SIC code 74909 to understand market risks and competitive positioning.