MIGHTY K LTD

Executive Summary

MIGHTY K LTD exhibits considerable financial distress characterized by negative net assets and a disproportionate level of long-term creditors relative to minimal current assets. While statutory compliance is maintained, the absence of operational activity and working capital highlights significant solvency and liquidity risks. Further investigation into its debt arrangements and business strategy is essential to assess prospects for recovery or sustained operation.

MIGHTY K LTD - Analysis Report

Company Number: 13192455

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

1. Risk Rating: HIGH
   The company shows a persistent negative net asset position and significant long-term creditor balances that exceed current assets, indicating solvency concerns. The financial data reflects minimal operational activity and negligible working capital, which raises liquidity and sustainability questions.

2. Key Concerns:

• Negative Net Assets and Shareholders' Deficit: The balance sheet indicates shareholders’ funds of -£5,654 as of the latest accounts, worsening from prior years, suggesting the company is insolvent on a balance sheet basis.
• Significant Long-Term Creditors: The presence of creditors falling due after more than one year (£5,517 in 2023) vastly exceeds current assets (£1), implying reliance on external funding or debt restructuring that may not be sustainable.
• Lack of Operational Activity: The company reports zero employees and minimal current assets (only £1), consistent with no trading or income-generating operations, which questions the ongoing viability.

3. Positive Indicators:

• Up-to-Date Filings: The company has no overdue accounts or confirmation statements, indicating compliance with statutory filing deadlines and regulatory requirements.
• Active Status: The company remains active and not under liquidation or administration, preserving potential for restructuring or operational changes.
• Limited Fixed Assets and Liabilities: Absence of fixed assets and no current creditors suggest limited operational risk from asset depreciation or short-term debt pressure.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand the company’s debt structure and repayment obligations.
• Clarify the company’s business model, revenue streams, and plans for generating cash flow or capital injection, given the lack of employees and minimal assets.
• Review any related-party transactions or guarantees that may impact financial stability, especially given the corporate director appointment and potential complex ownership/control structures.
• Confirm whether the company is a pure holding entity or dormant, given SIC code 64209 and minimal operational footprint.
• Assess directors’ intentions and strategic plans for future viability, including any pending investments or restructuring efforts.