MGHJ LTD

Executive Summary

MGHJ Ltd is a newly incorporated micro entity operating in IT consultancy with positive net assets and current assets exceeding current liabilities. The company shows good compliance with filings and has a simple governance structure with a single director-owner. However, limited financial disclosures and short operating history necessitate further due diligence on profitability and operational sustainability before considering investment.

MGHJ LTD - Analysis Report

Company Number: 14262173

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

1. Risk Rating: LOW
   MGHJ Ltd presents a low risk profile based on the available data. The company has positive net current assets and net assets, no overdue filings, and is compliant with filing deadlines. The business is small and in early stages but maintains a stable financial position.

2. Key Concerns:

• Limited scale and operational history: Incorporated in mid-2022, the company’s financial track record is short, which may limit assessment of long-term viability.
• Micro entity status with minimal disclosures: Financial data is limited to balance sheet figures without profit and loss details, constraining deeper financial analysis.
• Single director and 100% ownership: The company’s control is concentrated in one individual, which may present governance risks and dependence on a single decision-maker.

3. Positive Indicators:

• Positive and increasing net current assets and net assets over two years (£1,484 in 2023 to £3,314 in 2024), indicating improving financial stability.
• No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance.
• No employees reported, which can imply a low fixed cost base and potentially flexible cost structure aligned with a consultancy business.
• Industry classification (IT consultancy) typically involves low capital intensity and can scale efficiently with minimal fixed assets.

4. Due Diligence Notes:

• Obtain detailed profit and loss accounts and cash flow statements to assess operational profitability and liquidity dynamics.
• Review director’s background and any potential related party transactions due to the single director and sole shareholder structure.
• Verify business model sustainability and client base to confirm revenue generation capacity beyond initial startup phase.
• Check if any contingent liabilities or off-balance-sheet risks exist that might impact solvency.
• Investigate plans for business growth and management succession given concentrated control.