PORTOBELLO FLOORS LIMITED

Executive Summary

Portobello Floors Limited is a recently incorporated small private company exhibiting modest net assets and a narrow liquidity cushion. While compliant with statutory filings and showing some capital growth, the limited financial history and concentrated ownership suggest moderate risk. Further due diligence on cash flows, profitability, and governance is advised to fully assess operational sustainability and solvency.

PORTOBELLO FLOORS LIMITED - Analysis Report

Company Number: 14230010

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets (£4,623) and positive shareholders’ funds for its first two full financial years. However, the relatively low asset base, combined with current liabilities nearing £23,270, indicates a tight liquidity position. The company’s recent incorporation (2022) and small scale also contribute to the moderate risk rating, as operational stability is not yet fully established.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£23,270) are close to current assets (£27,893), resulting in a narrow working capital buffer (£4,623). This exposes the company to potential cash flow stress if receivables are delayed or expenses rise.
• Limited Financial History: With only two years of financials since incorporation, there is limited evidence of sustained operational performance or profitability. The absence of an income statement restricts visibility on earnings quality.
• Concentration of Control: The company’s ownership and voting rights are highly concentrated between two directors (Elizabeth Megson and Ashleigh Megson), which could pose governance risks without broader oversight or independent management.

3. Positive Indicators:

• Compliance and Governance: The company is active, not in liquidation, and has no overdue filings, indicating compliance with statutory obligations. Recent confirmation statements and accounts have been filed on time.
• Modest Growth in Net Assets: Shareholders’ funds increased from £100 in 2023 to £4,623 in 2024, suggesting some capital injection or retained earnings accumulation.
• Small Employee Base: Operating with only 2 employees reduces fixed overheads and may allow flexible cost management in early growth stages.

4. Due Diligence Notes:

• Examine Cash Flow Trends: Request cash flow statements or management accounts to assess liquidity management and confirm that receivables (£10,565) are collectible in a timely manner.
• Review Profitability and Revenue Trends: Obtain the full profit and loss accounts to understand revenue streams, margins, and operating expenses since the income statement is not publicly filed.
• Assess Director Backgrounds and Governance: Investigate the backgrounds of the key directors, particularly any conflicts of interest or related party transactions, to evaluate governance robustness given the ownership concentration.
• Confirm Contractual Obligations: Check for any off-balance sheet liabilities, lease commitments, or contingent liabilities that might impact financial stability.