Company Number: 13101270

Analysis Date: 2025-07-20 13:33 UTC

1. Risk Rating: MEDIUM
   While MAX BARGAIN LTD shows positive net assets and shareholders' funds with no overdue filings, its micro-entity status and relatively low asset base combined with a high proportion of current liabilities raise caution about liquidity and operational resilience.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£26,800) significantly exceed current assets (£2,512), resulting in a strongly negative net current assets figure (-£24,288), indicating potential short-term cash flow constraints.
• Small Scale and Limited Capital: The company’s share capital is minimal (£100), and its asset base is modest, limiting financial flexibility and ability to absorb operational shocks.
• Concentration of Control and Management: Three individuals each hold significant control (25-50% shares and voting rights), which may concentrate decision-making risk and limits diversification of governance perspectives.

3. Positive Indicators:

• Consistent Growth in Net Assets: Net assets have increased from £9,314 in 2020 to £15,585 in 2023, suggesting some improvement in financial position over time.
• Compliance and Timeliness: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Active Business with Growing Workforce: The company has grown from zero to three employees in the latest year, implying operational activity and potential growth.

4. Due Diligence Notes:

• Cash Flow Analysis: Detailed investigation into cash flow statements and working capital management to assess how the company manages liquidity given the negative net current assets.
• Trade Payables and Credit Terms: Review creditor aging and supplier payment terms to evaluate financial stress and risk of default.
• Governance and Control Structure: Explore how the concentrated shareholding and control influence decision-making and risk management, including any related party transactions.
• Business Model Sustainability: Understand the competitive position in the internet retail sector (SIC 47910), revenue streams, and margins to assess operational stability.
• Director and PSC Background Checks: Verify director history for any adverse records or compliance issues.