MARGELLA CONSULT LTD

Executive Summary

Margella Consult Ltd, a recently incorporated micro-entity, presents a high risk profile due to negative net assets and significant current liabilities relative to minimal current assets. While compliant with filings, the absence of profitability data and limited operating history restricts assessment of operational sustainability. Further due diligence is recommended to clarify the financial obligations and management’s strategy to restore solvency.

MARGELLA CONSULT LTD - Analysis Report

Company Number: 15206724

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by net liabilities of £39,636 against very low current assets (£752) and high current liabilities (£40,837) in its first financial period. This negative equity position and working capital deficit indicate an inability to meet short-term obligations without additional financing.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net liabilities position and substantial current liabilities compared to minimal current assets present a material risk to solvency and liquidity.
• Newly Incorporated with Limited Operating History: Incorporated in October 2023 and filing first accounts for a 13-month period only, there is limited historical financial data to assess operational stability or cash flow trends.
• No Profit & Loss Account Provided: The directors elected not to include a profit and loss statement, limiting insight into revenue generation, profitability, and cash flow dynamics critical to assessing sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, demonstrating adherence to regulatory obligations.
• Small Employee Base: Employing only 3 people may imply a lean cost structure, which could support operational efficiency if revenue improves.
• Clear Ownership and Management: Directors and persons with significant control are disclosed, with no apparent governance or disqualification issues.

4. Due Diligence Notes:

• Investigate Source of Current Liabilities: Clarify nature and terms of the £40,837 current liabilities and whether they are trade creditors, loans, or related party balances.
• Assess Business Model and Revenue Streams: Obtain profit and loss information or management accounts to evaluate the company’s ability to generate cash inflows.
• Review Directors’ Plans and Funding: Understand how the directors intend to address the negative net asset position and fund ongoing operations.
• Confirm No Related Party Transactions: Verify if there are transactions with directors or connected parties that may affect financial stability.