Company Number: 13578602

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: MEDIUM

Justification: Millivivash Limited shows modest net assets and positive shareholders' funds, indicating solvency. However, the significant deterioration in net current assets from positive £2,259 in 2023 to a negative £3,512 in 2024 signals liquidity pressure. The company has tangible fixed assets but minimal current assets (mostly cash) and increased current liabilities, suggesting possible short-term cash flow constraints. The company is active, filings are up to date, and there are no governance or director disqualification issues reported.

2. Key Concerns:

• Liquidity Decline: Net current assets swung from positive £2,259 to negative £3,512 in one year, driven by a sharp increase in current liabilities (from £530 to £4,591) and a reduction in current assets (mainly cash decreased from £1,387 to £1,079, and debtors fell to zero). This may impact the company’s ability to meet short-term obligations.
• Small Scale and Limited Operating History: Incorporated in 2021, with only one employee, limited turnover data due to abridged accounts, and no income statement filed publicly, making operational sustainability and profitability uncertain.
• Fixed Asset Investment: The addition of £12,000 in fixtures and fittings with associated depreciation could strain cash flow if not matched by revenue generation, especially given the liquidity concerns.

3. Positive Indicators:

• Solvency Preserved: Despite liquidity concerns, net assets increased from £2,259 to £6,328, supported by accumulated profit (profit and loss account increased accordingly), indicating retained earnings and capital growth.
• Timely Compliance: Accounts and confirmation statement filings are up to date with no overdue reports or penalties, reflecting good regulatory compliance.
• Clear Governance: The sole director is a named individual with no apparent disqualifications or compliance issues, and the company has a straightforward ownership and control structure.

4. Due Diligence Notes:

• Investigate the cause of the large increase in current liabilities in the 2024 financial year and whether these are trade payables, short-term loans, or other obligations.
• Obtain or review management accounts or cash flow statements to assess operational cash generation and short-term liquidity management.
• Review turnover and profitability figures, which are not disclosed in the abridged accounts, to understand the business model viability.
• Understand the nature and utilisation of the tangible fixed assets acquired in 2024 and their contribution to revenue or operational capacity.
• Confirm the company’s contractual obligations and any contingent liabilities not visible in the abridged financial statements.