NIVEX LTD

Executive Summary

NIVEX LTD exhibits a high risk profile primarily due to negative net assets and poor liquidity, indicating potential solvency challenges. While the company complies with filing requirements and maintains a simple governance structure, its limited scale and working capital deficit raise concerns about operational viability. Further investigation into liabilities and cash flow is recommended to understand the company’s capacity to meet obligations and sustain operations.

NIVEX LTD - Analysis Report

Company Number: 13828254

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (shareholders' funds) of £8,846 as of 31 January 2024, indicating insolvency on a balance sheet basis. Current liabilities vastly exceed current assets, reflecting poor liquidity and potential inability to meet short-term obligations.

2. Key Concerns:

   • Negative Net Assets: The balance sheet reveals net liabilities, which is a fundamental solvency risk and may impede ongoing operations or creditor confidence.
   • Liquidity Deficit: Current assets (£96) are negligible compared to current liabilities (£14,722), suggesting severe cash flow or working capital constraints.
   • Small Scale and Limited Operations: Micro-entity status with only one employee and minimal fixed assets may limit operational flexibility and growth prospects.

3. Positive Indicators:

   • Timely Filings: The company is current on accounts and confirmation statement filings, indicating regulatory compliance in terms of reporting deadlines.
   • Clear Ownership and Control: Single shareholder and director provides straightforward governance and decision-making structure.
   • Active Website and Contact Details: Presence of an active website and direct contact information supports transparency and ongoing business activity.

4. Due Diligence Notes:

   • Investigate the nature and terms of the substantial current liabilities (£14,722) to assess creditor relationships and repayment risks.
   • Review cash flow statements or bank balances (not provided) to understand liquidity management and funding sources.
   • Clarify the business model and revenue streams given the micro size and low asset base to evaluate operational sustainability.
   • Confirm director’s plans or agreements to address the negative equity position and whether any external financing or restructuring is contemplated.
   • Assess any contingent liabilities or off-balance-sheet exposures that could exacerbate financial risk.