MEVOL(UK) LIMITED

Executive Summary

MEVOL(UK) LIMITED exhibits high financial risk with negative net assets and significant current liabilities exceeding current assets. Liquidity constraints and minimal operational activity compound solvency concerns. While compliant with filing requirements and possessing a concentrated ownership structure, further investigation into inventory valuation, funding strategies, and operational viability is essential before considering investment.

MEVOL(UK) LIMITED - Analysis Report

Company Number: 14555517

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: HIGH
   Justification: The company reports net current liabilities and negative net assets, indicating a weak solvency position. The low cash balance relative to current liabilities raises liquidity concerns. The business is very new with limited operating history and no employees, increasing operational risk.

2. Key Concerns:

• Negative net assets of £6,490 and net current liabilities of £6,490 suggest the company is insolvent on a balance sheet basis.
• Cash of only £2,142 versus current liabilities of £44,493 poses a significant liquidity risk and potential inability to meet short-term obligations.
• Absence of employees and minimal revenue-related debtors (£1,000) imply limited operational activity and uncertain sustainability.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, indicating compliance with Companies House requirements.
• Ownership is concentrated with a single person and a related Hong Kong entity, which may facilitate decisive governance and capital support.
• Inventory is recorded at £34,861, suggesting some stock or asset base that could be leveraged or sold to improve liquidity.

4. Due Diligence Notes:

• Investigate the nature and realizability of stock valued at £34,861 to assess potential liquidity from inventory sales.
• Review cash flow forecasts and funding plans to understand how the company intends to meet its £44,493 current liabilities given low cash reserves.
• Examine any intercompany transactions or support from the Hong Kong parent (Mevol (Hk) Limited) or significant controller Sik Sze Cheung.
• Clarify business model and revenue generation since the company has no recorded employees and limited receivables, to evaluate operational sustainability.