OWM GROUP LTD

Executive Summary

OWM Group Ltd is a newly incorporated micro private company showing a negative net asset position and significant long-term liabilities relative to its minimal asset base, indicating a high solvency risk. While the company demonstrates good compliance and a simple governance structure, the financial data suggests operational and liquidity challenges that warrant close scrutiny. Further investigation into creditor terms and cash flows is recommended to better assess sustainability and risk exposure.

OWM GROUP LTD - Analysis Report

Company Number: 15351250

Analysis Date: 2025-07-20 15:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by net liabilities of £5,349 within its first financial year. The creditors due after more than one year totaling £7,014 exceed the company’s current and fixed assets combined, indicating a negative net asset position and a potential inability to meet long-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position (-£5,349) signals that liabilities outweigh assets, raising questions about financial stability.
• High Long-Term Creditors: £7,014 of creditors falling due after more than one year compared to minimal assets suggests over-reliance on debt financing or deferred liabilities that may pressure future cash flows.
• Limited Capital Base: Share capital is nominal (£3.00), and the company is newly incorporated (December 2023), which may constrain operational resilience and restrict access to additional funding.

3. Positive Indicators:

• Compliance and Timely Filing: No overdue filings or accounts, showing good regulatory compliance and governance in terms of statutory requirements.
• Clear Management Structure: Two directors with full control and voting rights, which may facilitate streamlined decision-making.
• Micro Entity Reporting: Utilization of micro-entity accounting standards reduces administrative burden and reflects the company’s small scale and potentially limited complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £7,014 long-term creditors to understand repayment obligations and impact on liquidity and solvency.
• Review cash flow statements (if available) or bank statements to assess liquidity position beyond balance sheet figures, especially given the low current assets (£900).
• Understand the business model under SIC codes 98000 (residents property management), 77400 (leasing of intellectual property), and 74909 (other professional activities) to evaluate revenue streams and operational sustainability.
• Confirm the relationship between the directors and PSCs, given both are named as controllers and residents in England, to assess governance and potential related-party transactions.
• Monitor future filings for profitability trends and changes in capital structure as the company matures.