OBI JUAN DEV LTD

Executive Summary

Obi Juan Dev Ltd exhibits significant solvency risk with net liabilities shortly after incorporation and limited operational history. While regulatory compliance is maintained and the business operates in a potentially scalable IT consultancy sector, the negative working capital and total equity deficit warrant careful scrutiny. Further investigation into liabilities, cash flow plans, and governance is advised before considering investment.

OBI JUAN DEV LTD - Analysis Report

Company Number: 15256431

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   Justification: The company reports net current liabilities and net negative shareholders’ funds shortly after incorporation, indicating an immediate solvency concern. The micro-entity classification and short trading history limit available financial data, but the negative net assets position is a red flag.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company shows net current liabilities of £7,936 and net assets of -£8,295 as at 30 November 2024, indicating it does not currently have sufficient assets to cover its short-term liabilities.
• Lack of Operating History: Incorporated in November 2023 and reporting for just over one year, limited operational track record restricts confidence in business sustainability and cash flow generation.
• Single Director and Shareholder Control: Full ownership and directorship by one individual may present governance risks and concentration of control, which could impact decision-making and risk oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed its accounts and confirmation statement on time, showing regulatory compliance and governance discipline.
• Clear Industry Classification: Operating within IT consultancy and related services (SIC 62090, 62020) which typically have low fixed asset requirements and scalable business models.
• Micro-Entity Filing: Qualification as a micro-entity reduces administrative burden and suggests company size and complexity are manageable.

4. Due Diligence Notes:

• Investigate the nature and origin of current liabilities totaling £7,936 and whether these are trade creditors, loans, or accruals.
• Review cash flow projections and upcoming funding sources to assess how the company plans to resolve its negative working capital and net asset deficit.
• Assess business model viability and client acquisition strategy given limited operational history.
• Clarify the director’s background, expertise, and plans for capitalization to mitigate risks associated with sole control.