Company Number: 14251247

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: MEDIUM
   MERCORE CAPITAL LTD shows positive net assets and a recent increase in working capital, but the micro-entity status, zero employees, and reliance on director support for going concern suggest some operational and liquidity risk. The financial position appears stable but limited operational scale and lack of audit reduce transparency.

2. Key Concerns:

• Operational Sustainability: The company reported zero employees and minimal share capital (£5), indicating very limited operational activity or reliance on external resources or the parent company.
• Liquidity Dependence: Current liabilities are high (£992k) and close to current assets (£1.06m), leaving a modest net current asset buffer (£72k), which could be strained if cash inflows reduce.
• Going Concern Reliance: The directors explicitly state that ongoing activity depends on their continued support, indicating potential vulnerability if this support is withdrawn.

3. Positive Indicators:

• Net Asset Growth: Net assets increased substantially from £3k to £72k in the latest year, suggesting improved financial position or capital injection.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date with no overdue notices, indicating good regulatory compliance.
• Ownership and Control Clarity: Ownership is fully controlled by Mercore Group Ltd with clear control over voting and director appointments, which may provide stable governance and financial backing.

4. Due Diligence Notes:

• Verify the nature of current assets (£1,064,484) to assess liquidity quality (e.g., cash vs. receivables or other less liquid assets).
• Investigate the composition of current liabilities (£992,351) to understand payment terms and maturity profile.
• Confirm extent and terms of director or parent company financial support underpinning going concern.
• Review business model and revenue streams given zero employees and micro-entity filing exemption.
• Monitor any changes in director appointments or control structure that might affect stability.