Company Number: 15127124

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: MEDIUM
   Justification: NUU COLLECTIVE LTD, incorporated in September 2023, has filed micro-entity accounts showing net assets of £32,936 and positive net current assets of £28,693 as of 30 September 2024. While the company is solvent on paper, the high current liabilities relative to current assets suggest tight liquidity. Limited operating history and modest asset base contribute to a medium risk profile for financial stability.

2. Key Concerns:

• Liquidity Tightness: Current liabilities (£250,187) are close to current assets (£278,880), leaving a narrow working capital buffer of £28,693 which could strain cash flow if revenue fluctuates.
• Limited Operating History: Being active for just over one year, there is insufficient financial history to assess business sustainability or revenue trends.
• Concentrated Ownership and Management: Both directors and persons with significant control are the same two individuals, which may increase governance risk and limit managerial diversity.

3. Positive Indicators:

• Compliance: The company is current with all filings, including accounts and confirmation statements, indicating good regulatory compliance.
• Positive Net Assets: Despite limited history, the company shows net assets and positive equity, suggesting initial capital adequacy.
• Low Employee Count: With only two employees on average, the company may have low fixed costs aiding operational flexibility.

4. Due Diligence Notes:

• Review detailed cash flow statements and turnover figures to assess if current asset levels are supported by strong receivables or other liquid items.
• Investigate the nature and maturity of current liabilities to understand potential short-term obligations.
• Examine business model and contracts to evaluate sustainability and revenue generation capability beyond the start-up phase.
• Assess director backgrounds and any related party transactions given the shared addresses and occupations to identify potential conflicts of interest.
• Confirm the absence of contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.