NEWSDIP LTD

Executive Summary

The company, newly formed and classified as a micro-entity, exhibits negative working capital and limited operational history, raising significant liquidity and solvency concerns. While compliance with filing requirements and ownership of fixed assets are positives, the financial position suggests heightened risk requiring further detailed evaluation of liabilities and business viability.

NEWSDIP LTD - Analysis Report

Company Number: 15169308

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: HIGH

Justification: The company shows significant net current liabilities (£113,205 negative working capital) against modest fixed assets, indicating potential liquidity stress. Being newly incorporated (less than 1.5 years) with only micro-entity financials limits operational track record to assess sustainability. Although solvent on a net assets basis (£24,646 equity), the large current liabilities relative to current assets pose solvency and liquidity risks.

2. Key Concerns:

• Negative net current assets: Current liabilities substantially exceed current assets, potentially impairing the company’s ability to meet short-term obligations.
• Limited financial history and micro-entity status: The company is newly formed with minimal operational and financial data, limiting visibility on business sustainability.
• Concentrated control and management: Two directors with significant shareholdings and voting rights may limit governance oversight and increase operational risk.

3. Positive Indicators:

• No overdue filings: The company is up-to-date with statutory accounts and confirmation statements, indicating compliance with regulatory requirements.
• Fixed assets present: Ownership of fixed assets (£137,851) provides some tangible backing to the balance sheet.
• Low employee count (2) may indicate lean operations, potentially reducing fixed overhead commitments.

4. Due Diligence Notes:

• Investigate composition and maturity of current liabilities to assess repayment risk and cash flow timing.
• Review business plan and revenue projections to understand how the company intends to improve liquidity and profitability.
• Assess director background and related party transactions to evaluate governance and potential conflicts of interest.
• Clarify the nature and valuation basis of fixed assets to confirm realizable value.
• Confirm if any external financing or guarantees support the current liabilities.