Company Number: 14862973

Analysis Date: 2025-07-20 17:45 UTC

1. Risk Rating: MEDIUM
   Justification: NGARNAN LTD is a newly incorporated private limited company with minimal net assets (£138) and nominal cash (£15). While current assets slightly exceed current liabilities, the company’s financial scale is very small and highly dependent on receivables (debtors). This limited financial buffer presents moderate solvency and liquidity risks, typical for an early-stage micro-entity.

2. Key Concerns:

• Liquidity Constraints: Cash on hand is negligible (£15), and the company’s current assets are primarily debtors (£2,835). Any delay or default in collecting receivables could impair the company’s ability to meet short-term obligations (£2,712 current liabilities).
• Small Capital Base: Shareholders’ funds total only £138, indicating minimal equity cushion to absorb losses or unforeseen expenses.
• Related Party Exposure: A significant portion of debtors (£1,835) is owed by the director, which may raise collection or conflict of interest risks affecting cash flow reliability.

3. Positive Indicators:

• Compliance and Filing: The company is active and up to date with its statutory filings and accounts, with no overdue returns or accounts.
• Clear Control Structure: The sole director and 75-100% shareholder, Nancy Ngari, also the registered address holder, indicates straightforward governance without complex ownership issues.
• Business Activity: The company operates in “Other human health activities” (SIC 86900), a sector with ongoing demand, which may support future revenue growth.

4. Due Diligence Notes:

• Verify the nature and collectability of debtors, especially the £1,835 owed by the director, to assess liquidity risk.
• Investigate the company’s business model, client base, and revenue generation prospects given the minimal asset base and early stage of operation.
• Review the director’s plans for capital injection or funding to support operational needs and growth, considering current low cash balances.
• Confirm no undisclosed liabilities or contingent risks exist, given the small equity and limited financial history.