POWER BUSINESS NETWORKING LTD
Executive Summary
Power Business Networking Ltd is a recently incorporated micro-entity with minimal financial resources and no operating history. While regulatory compliance is up to date and ownership structure is clear, the negligible net asset base and lack of employees pose significant solvency and liquidity risks. Further due diligence on funding and business viability is essential before investment consideration.
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This analysis is opinion only and should not be interpreted as financial advice.
POWER BUSINESS NETWORKING LTD - Analysis Report
Risk Rating: HIGH
Justification: The company is newly incorporated (August 2023) and has very minimal financial data available. Its net assets and working capital are extremely low (£457), indicating minimal capitalization and limited financial buffer. No employees and no audit obligation suggest a start-up phase with limited operational history, increasing uncertainty around solvency and liquidity.Key Concerns:
- Very Limited Financial Resources: Net current assets of £457 are negligible, which raises concerns about the company’s ability to meet obligations without additional funding.
- Lack of Operating History: Incorporated less than one year ago with no employees and minimal assets, limiting insight into operational stability or revenue generation capacity.
- Micro-Entity Reporting and No Audit: Accounts prepared under micro-entity provisions without audit means limited transparency and detail, limiting confidence in financial reporting and governance oversight.
- Positive Indicators:
- No Overdue Filings: Latest annual accounts and confirmation statement are filed timely, indicating compliance with regulatory requirements.
- Clear Ownership and Control: Two directors each hold 25-50% of shares and voting rights, with rights to appoint/remove directors, suggesting consolidated control and clear governance structure.
- No Red Flags on Director Conduct: Both directors appear current with no disclosed disqualifications or compliance issues.
- Due Diligence Notes:
- Verify source and sufficiency of initial capital and funding plans to support operations beyond the minimal net asset position.
- Assess business plan, revenue projections, and customer acquisition strategy given no operational employees or reported turnover.
- Review any informal financial arrangements or loans from shareholders that may not appear in micro-entity accounts.
- Investigate the nature and scale of business activities under SIC 82990 to understand revenue model and sustainability potential.
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