MATTHEW ELUWANDE LIMITED

Executive Summary

MATTHEW ELUWANDE LIMITED is a newly formed private limited company operating in the manufacture of wearing apparel. The initial financials reveal operating losses and a challenging liquidity position with significant creditor obligations beyond one year. While the company is compliant with filing requirements and controlled by a single director-owner, the current financial indicators suggest a high risk profile requiring further investigation into its funding and business viability.

MATTHEW ELUWANDE LIMITED - Analysis Report

Company Number: 15431726

Analysis Date: 2025-07-20 16:19 UTC

1. Risk Rating: HIGH
   The company shows significant early-stage losses, negative operating profit, and a sizeable creditor balance due after more than one year relative to its minimal turnover and cash resources. As a newly incorporated entity, its financial position and ability to meet obligations warrant caution.

2. Key Concerns:

• Operating Loss: The company recorded a loss before tax of £14,440 on turnover of only £5,365, indicating the business is not yet profitable.
• Liquidity: Cash at bank is zero with current assets limited to payments on account (£1,316), while current liabilities are £7,397, indicating potential working capital stress.
• Long-term Creditors: The balance sheet shows £7,397 in creditors due after one year, which is substantial given the low asset base (£8,500 fixed assets) and net assets (£2,419), raising concerns about the sustainability of debt obligations.

3. Positive Indicators:

• Compliance: The company is active, up to date on filings, and accounts are not overdue, showing adherence to statutory requirements.
• Sole Director/Owner: The sole director and 75-100% shareholder is clearly identified, which may facilitate streamlined decision-making and accountability.
• Small Company Reporting: The accounts comply with the small company regime, reducing administrative burden and indicating a small-scale operation.

4. Due Diligence Notes:

• Clarify the nature of the £7,397 creditors due after more than one year—terms, counterparties, and security if any.
• Investigate cash flow projections and funding plans given zero cash and ongoing losses.
• Understand the business model viability and growth strategy given the low turnover and high expenses in the first year.
• Confirm the reliability of the note stating rent paid by government income (£14,400) as this may materially affect cash flow analysis.
• Assess whether the tangible assets (fixtures & fittings) are essential for operations or represent sunk costs.