MUBALOO LIMITED

Risk Rating: MEDIUM Justification: While the company demonstrates strong regulatory compliance and historical financial health, the available financial data is severely outdated (over a decade old). Consequently, current solvency and liquidity positions cannot be verified from the provided figures. Furthermore, as a wholly-owned subsidiary of Mediabrands International Limited, the company's operational stability is intrinsically tied to the parent company's strategic decisions and financial health, concentrating control away from any minority interests.

Key Concerns: - Outdated Financial Data: The detailed financial history and filed accounts text are from 2012. Relying on 12-year-old data to assess current solvency and liquidity is highly unreliable; the business's financial position could have deteriorated significantly since then. - Subsidiary Status and Concentration of Control: Mediabrands International Limited owns more than 75% of the shares, holds over 75% of the voting rights, and has the right to appoint and remove directors. This level of control means the company's operational direction, capital structure, and even its continued existence are subject to the parent company's strategic priorities. - Historical Cash Flow Sensitivity: In the 2012 accounts, debtors represented £726,774 against a cash balance of only £92,946. While net current assets were healthy (£379,460), the heavy reliance on debtors creates potential liquidity risks if clients delay payment or default, a common issue in the IT services and agency sector.

Positive Indicators: - Strong Regulatory Compliance: The company is actively registered with up-to-date filings. Accounts are made up to 31 December 2024 (due September 2026) and the confirmation statement is made up to November 2025, with no overdue flags. - Historical Financial Growth: The 2012 data showed a significant improvement in the balance sheet, with net assets growing from £109,402 in 2011 to £467,189 in 2012, and current liabilities reducing from £568,005 to £440,260 over the same period. - Parent Company Backing: Being part of the Mediabrands International group can provide financial stability, operational support, and access to larger contracts that a standalone small company might not secure.

Due Diligence Notes: - Obtain Recent Accounts: It is essential to acquire the most recent filed accounts (post-2023) to assess the current liquidity, solvency, and profitability. The 2012 figures are no longer a valid basis for investment decisions. - Parent Company Analysis: Conduct a full financial and strategic review of Mediabrands International Limited. The risk profile of Mubaloo Limited is heavily dependent on the parent entity's health and strategic intent (e.g., whether the subsidiary is being starved of cash, prepared for divestment, or integrated into a larger group structure). - Director Turnover: The current board (Jeremiah, Nichols, Hytner, Treleaven) differs from the 2012 accounts signatory (Mark Mason). Investigate the timing and reasons for board changes to assess management stability. - Outstanding Director Loan: The 2012 accounts noted an outstanding interest-bearing loan of £7,337 to a director (C. Price), who is not listed among the current officers. Verify that this historical related-party transaction has been settled and check for any current related-party balances in the modern accounts.