NICHE WEBSITES LTD

Executive Summary

Niche Websites Ltd demonstrates a high risk profile due to persistent negative net assets, minimal cash reserves, and no recorded employees, indicating operational and financial distress. While compliance and governance appear maintained, the company’s financial trajectory raises concerns about solvency and liquidity. Further due diligence is essential to evaluate the company's viability and any director support arrangements.

NICHE WEBSITES LTD - Analysis Report

Company Number: 12631915

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets, negative shareholders' funds, and a sharp decline in cash reserves over recent years. The absence of employees and minimal share capital further emphasize operational fragility.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company’s net current liabilities have increased from £-407 in 2020 to £-2,398 in 2024, with shareholders’ funds deteriorating from £-507 to £-2,498, indicating ongoing losses and erosion of equity.

• Severe Liquidity Constraints: Cash at bank has fallen drastically from £627 in 2020 to a mere £8 in 2024, raising concerns about the company’s ability to meet short-term obligations, especially given current liabilities of £2,406 at the latest year-end.

• Lack of Operational Scale and Sustainability: The company has no employees recorded over the past years and minimal share capital (£100), suggesting limited operational capacity and potential difficulties in generating sustainable revenues or scaling the business.

3. Positive Indicators:

• Compliance with Filing Requirements: All statutory accounts and confirmation statements appear up to date with no overdue filings or penalties, demonstrating compliance with regulatory obligations.

• Stable Directorship: The company has a single consistent director since incorporation, which may reflect stable governance at the management level.

• Exemption from Audit: The company qualifies for the small companies regime and exemption from audit, which is consistent with its size and operational scale.

4. Due Diligence Notes:

• Investigate Going Concern Status: Review director’s statements and any internal forecasts to assess whether the company is considered a going concern despite the deteriorating financial position.

• Review Director’s Advances: The increase in director’s current accounts from £1,033 in 2023 to £1,606 in 2024 suggests director funding; clarify terms, repayment plans, and implications for company solvency.

• Assess Underlying Business Model and Revenue Streams: Limited information on turnover or profits is available. Obtain details on contracts, client base, and revenue generation to evaluate operational viability.

• Examine Potential Contingent Liabilities or Off-Balance Sheet Items: Given the weak balance sheet, determine if there are any contingent liabilities or pending legal or financial obligations.

• Clarify Reasons for Cash Depletion: Understand the drivers for rapid cash decline and any plans to restore liquidity.

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