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.