PAIN 2 PURPOSE LTD

Executive Summary

PAIN 2 PURPOSE LTD is a very early-stage micro-entity with minimal trading and extremely limited financial resources, placing it at high risk from a solvency and liquidity perspective. While it maintains good compliance and clear ownership, its operational sustainability remains unproven. Prospective investors should conduct thorough due diligence on funding plans and business viability before engagement.

PAIN 2 PURPOSE LTD - Analysis Report

Company Number: 14555373

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated (Dec 2022) with minimal trading activity and very limited financial resources (net assets of £51). It has recorded a loss of £70 in its latest financial year, and turnover remains negligible (£120). There are no employees and no fixed assets, indicating early-stage operations without established cash flows or operational scale.

2. Key Concerns:

• Liquidity and Cash Flow Constraints: Current assets amount to only £51 with no current liabilities, indicating very limited liquidity. The company’s ability to cover expenses or absorb shocks is extremely weak.
• Operational Sustainability: With negligible turnover and no employees, the business model is unproven and highly dependent on future revenue growth which is yet to materialize.
• Financial Performance and Funding: A net loss in the initial year and no indication of external funding or reserves raise concerns about the company’s capacity to continue operating without additional capital injection.

3. Positive Indicators:

• Compliance and Governance: The company is up to date with all statutory filings and accounts, with no overdue returns or accounts indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, providing transparency of control and decision-making.
• Sector Focus: The company is focused on wellness coaching and personal development, sectors with potential for growth, especially post-pandemic, which may bode well for future prospects if executed successfully.

4. Due Diligence Notes:

• Investigate the director’s plans and timeline for scaling operations and generating sustainable revenues.
• Assess any external funding or capital commitments that may not yet be reflected in the accounts but are critical for survival.
• Evaluate market positioning and competitive landscape to understand the viability of the business model.
• Confirm whether any related party transactions or off-balance sheet liabilities exist beyond those disclosed.
• Review management accounts or cash flow forecasts for up-to-date insights on liquidity and operational progress.