MUSE AND MOI LTD

Executive Summary

Muse and Moi Ltd, incorporated in early 2023, shows early signs of financial strain with negative net assets and net current liabilities, primarily due to significant director loans. While the company maintains statutory compliance and has an active market presence, these solvency and liquidity concerns present a high investment risk at this stage. Further detailed financial and operational due diligence is essential to evaluate the company’s prospects and funding stability.

MUSE AND MOI LTD - Analysis Report

Company Number: 14587732

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating solvency and liquidity challenges within its first full financial year of operation.

2. Key Concerns:

• Negative Net Assets: The company reports shareholders' funds of approximately -£6,772, indicating liabilities exceed assets. This raises concerns about the company’s solvency.
• Net Current Liabilities: Current liabilities (£61,557) exceed current assets (£47,985) by £13,572, suggesting potential short-term liquidity issues and difficulty meeting obligations as they fall due.
• Director’s Loan Account: A significant portion (£44,690) of current liabilities relates to directors’ loan accounts, which might indicate dependence on director funding to support operations, a risk if such support ceases.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Active Online Presence: A live website and social media engagement demonstrate efforts to market and develop the business.
• Industry Focus: Operating in retail sales of watches, jewellery, footwear, and clothing in specialised stores could offer niche market opportunities if managed effectively.

4. Due Diligence Notes:

• Financial Performance Details: Obtain full profit and loss account and cash flow statements to assess operational profitability and cash generation, as only balance sheet data is available.
• Director’s Loan Terms: Clarify the nature, terms, and repayment schedule of the director’s loan to understand creditor risk and funding stability.
• Business Plan and Funding: Review business plan and funding arrangements to assess sustainability and capacity to address current negative net asset position.
• Customer Base and Suppliers: Investigate customer concentration risk, supplier terms, and stock turnover to evaluate operational stability.
• Management Changes: Note the resignation of one director within the first year; assess impact on governance and management continuity.