MODULATE TALENT LTD

Executive Summary

Modulate Talent Ltd is a newly formed private limited company with significant negative net assets and net current liabilities entirely funded by director loans. While it maintains compliance with statutory filings, the absence of trading activity and operational infrastructure poses high solvency and liquidity risks. Careful scrutiny of director funding arrangements and future business viability is recommended before investment consideration.

MODULATE TALENT LTD - Analysis Report

Company Number: 15169818

Analysis Date: 2025-07-20 18:29 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns with net current liabilities of £23,663 against cash of only £3. It is newly incorporated (less than one year) and has no employees or trading history to indicate operational stability.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net liabilities of £23,663 reflect a capital deficiency which questions its ability to meet obligations as they fall due.
• Director Loans as Primary Liability: The current liabilities consist entirely of loans from directors, indicating reliance on related party funding rather than external or operational cash flow. This may present risks if directors are unwilling or unable to continue financing.
• Lack of Operating Activity: No employees and no indication of income or trading activity to support sustainable operations. This raises doubts about the company’s ongoing viability without further capital injection.

3. Positive Indicators:

• Compliance and Governance: The company is up to date with filing its accounts and confirmation statements, with no overdue filings or penalties noted.
• Clear Director and PSC Structure: Four directors are appointed, and Persons with Significant Control (PSCs) are clearly identified, supporting transparency in governance.
• No Indication of Insolvency Proceedings: Company status is active with no liquidation or administration processes underway.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including repayment plans and security, to assess financial risk.
• Review any business plans, contracts, or pipeline that might support future revenue generation and operational viability.
• Confirm whether additional capital injections or external funding are planned to address the current deficit.
• Validate the reasons behind the recent director resignations occurring on the last day of the financial year and any implications for management continuity.