PIPIT LIMITED

Executive Summary

PIPIT LIMITED is a recently incorporated micro-entity with minimal operating history and modest financial resources. Early financial results show a small loss and very limited liquidity, signaling a high risk profile for investors due to potential solvency and sustainability challenges. However, the company maintains good compliance with statutory filings and has a straightforward ownership structure.

PIPIT LIMITED - Analysis Report

Company Number: SC775118

Analysis Date: 2025-07-29 18:15 UTC

1. Risk Rating: HIGH
   PIPIT LIMITED operates as a micro-entity with minimal financial activity and is in its first year of operation. The company posted a loss and holds very limited assets and working capital, which raises concerns regarding its ability to sustain operations and meet obligations without additional funding.

2. Key Concerns:

• Negative Operating Result: The company incurred a loss of £1,639 despite generating turnover of only £2,972, indicating early operational inefficiency or startup costs exceeding income.
• Minimal Current Assets: With only £165 in current assets and no current liabilities, the company has extremely limited liquidity to cover operational expenses or unforeseen costs.
• Single Shareholder and Director Control: Dr. Lloyd Hamilton holds 75-100% of shares and voting rights, concentrating control and potentially increasing governance risk if succession or oversight is lacking.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has submitted accounts and confirmation statements on time, demonstrating regulatory compliance.
• No Creditors or Liabilities: Absence of current or long-term liabilities reduces immediate solvency risk, though this is more reflective of low activity than financial strength.
• Clear Ownership Structure: The sole director and shareholder structure simplifies decision-making and accountability.

4. Due Diligence Notes:

• Investigate the business model and revenue generation plans given the very low turnover and operating loss in the first financial period.
• Assess the director’s capacity and willingness to inject additional capital or secure financing to support the company’s growth and liquidity needs.
• Review any off-balance sheet commitments or contingent liabilities not disclosed in the accounts.
• Monitor subsequent filings and financial performance to identify any deterioration or improvement in financial health.