MAKONDO LIMITED

Executive Summary

Makondo Limited is a recently incorporated private company engaged in real estate management with a net liability and significant short-term indebtedness mainly owed to a director. While the company has tangible fixed assets and is compliant with filing deadlines, its current financial position indicates high solvency and liquidity risks. Further due diligence on funding arrangements and operational plans is recommended before considering investment.

MAKONDO LIMITED - Analysis Report

Company Number: 14812790

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risks with net current liabilities of £92,061 and net liabilities overall of £2,733 despite holding tangible fixed assets. The large creditor balance owed to a director indicates potential related party financing rather than independent funding, raising liquidity concerns.

2. Key Concerns:

• Negative net current assets (-£92,061) driven by substantial short-term liabilities (£92,873), primarily owed to a director, indicating potential liquidity strain or reliance on related party funding.
• Net liabilities position (-£2,733) reflects an overall deficit in shareholders' funds and raises questions about solvency and capital adequacy.
• No employees and limited operational data suggest the company may be in an early, non-revenue-generating stage or holding assets without active trading, impacting sustainability and cash flow generation.

3. Positive Indicators:

• Tangible fixed assets valued at £89,328 provide some asset backing and potential collateral.
• Timely filing of accounts and confirmation statements indicates compliance with statutory obligations and governance discipline.
• Ownership and control are clearly defined with a majority shareholder/director holding 75-100% equity and voting rights, simplifying decision-making and potentially expediting resolution of financial issues.

4. Due Diligence Notes:

• Investigate the nature of the £92,573 director loan: terms, repayment schedule, interest, and whether it is convertible or repayable on demand.
• Clarify the company’s business model, revenue generation plans, and the role of the tangible fixed assets (e.g., are they investment properties or operational facilities).
• Review cash flow forecasts and any future funding arrangements to assess the company’s ability to meet short-term obligations and move towards profitability.
• Confirm there are no outstanding regulatory or compliance issues beyond filing deadlines, including any director conduct concerns or related party transaction disclosures.