MYSUPPORTROOM LTD

Executive Summary

MySupportRoom Ltd is currently facing high financial risk due to a significant liquidity shortfall and negative equity position as of April 2024. While regulatory filings are current and management appears stable, the company's recent financial deterioration and large accumulated losses raise serious concerns about its ability to meet obligations and sustain operations without additional capital or restructuring. Further due diligence on creditor terms and cash flow projections is essential before considering investment.

MYSUPPORTROOM LTD - Analysis Report

Company Number: 12554309

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net current liabilities of £369,133 and negative shareholders’ funds of the same amount as of 30 April 2024. This marks a sharp deterioration from the prior year’s positive net current assets and equity, indicating a recent and material financial distress. The large increase in current liabilities, especially "other creditors," suggests possible liquidity issues and inability to meet short-term obligations without additional financing.

2. Key Concerns:

• Severe negative working capital: Current liabilities (£530,535) far exceed current assets (£161,402), indicating immediate liquidity pressures.
• Substantial accumulated losses: The profit and loss reserve shows a cumulative loss of £1,269,192, reflecting ongoing unprofitability and erosion of equity.
• Director’s loan account: The director, Mr Ashish Vipani, has a significant negative loan balance (£126,507), which may imply reliance on director financing and potential related-party risks.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, demonstrating regulatory compliance and good governance practices.
• Consistent leadership: The same two directors have been in place since incorporation, which may provide management stability.
• Operating in growth sectors: The SIC codes indicate activities in web portals and IT services, sectors with potential for scalability and growth.

4. Due Diligence Notes:

• Investigate the nature and maturity of the "other creditors" which have increased drastically, to assess potential refinancing or settlement risks.
• Review cash flow statements and management forecasts to understand how the company plans to address the liquidity shortfall.
• Examine the director’s loan arrangements for terms, repayment plans, and any potential conflicts of interest.
• Assess the revenue trend and profitability drivers given the large accumulated losses and recent deterioration in net assets.
• Confirm whether there are any contingent liabilities or pending legal issues not disclosed in the accounts.