Company Number: 13439983

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: HIGH
   MAYA COUNSELLING LTD exhibits significant financial distress as evidenced by persistent negative net current assets and net liabilities over the past three years. The company’s liabilities substantially exceed its current assets, indicating a solvency risk and potential inability to meet short-term obligations.

2. Key Concerns:

• Solvency and Negative Equity: Net liabilities have increased from approximately £6,477 in 2022 to £10,260 in 2024, with shareholders’ funds deeply negative, signaling ongoing losses and deteriorating financial health.
• Liquidity Constraints: Cash balances are extremely low (£1,907 in 2024) against current liabilities of £12,167, indicating potential cash flow challenges to service debts as they fall due.
• Scale and Operational Risk: The company operates with only one employee and a single director who holds full control, raising concerns about operational resilience and governance robustness.

3. Positive Indicators:

• Compliance and Filing Status: The company is active, up to date with statutory filings (no overdue accounts or confirmation statements), showing adherence to regulatory requirements.
• Sector Focus: Operating in social work, health, and educational support services (SIC codes 88990, 86900, 85600), which may benefit from ongoing demand despite financial issues.
• Limited Share Capital: Small share capital (£100) limits direct equity exposure for investors, which can be a mitigating factor for certain risk profiles.

4. Due Diligence Notes:

• Investigate the causes of ongoing losses and negative equity trend to determine if these are temporary start-up issues or structural problems.
• Review cash flow projections and creditor arrangements to assess short-term liquidity management and risk of default.
• Confirm the director’s capacity and plans for business turnaround or capital injection given sole control and limited operational scale.
• Explore client base stability, contracts, and revenue streams to evaluate operational sustainability.
• Check for any contingent liabilities or related party transactions that may not be reflected in current accounts.