POWERING YOUR POTENTIAL LTD

Executive Summary

Powering Your Potential Ltd remains solvent but exhibits signs of financial weakening, with a notable drop in net assets and working capital in its latest accounts. The company complies with filing requirements and maintains positive working capital, yet limited financial disclosures and operational contraction prompt medium risk concerns. Further due diligence on cash flow and profitability is advised to fully assess sustainability.

POWERING YOUR POTENTIAL LTD - Analysis Report

Company Number: 13167043

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net assets and working capital in the most recent year (2024), which suggests a potential deterioration in financial stability. Although it remains solvent, the reduction in liquidity and equity warrants caution.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets dropped from £9,654 in 2023 to £2,248 in 2024, and net current assets fell from £5,744 to £1,576, indicating weakening financial buffers.
• Reduced Employee Base: The average number of employees halved from 2 to 1 in the latest year, possibly signaling downsizing or operational contraction.
• Limited Financial Transparency: The company has elected not to present a profit and loss account, limiting insight into profitability and cash flow performance.

3. Positive Indicators:

• Current on Filings: No overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• Minimal Debt Burden: Current liabilities remain modest and manageable relative to current assets, maintaining a positive net working capital position.
• Controlled Ownership and Governance: Clear significant control structure with an active director and majority shareholder, implying stable governance.

4. Due Diligence Notes:

• Review underlying causes for the sharp decline in net assets and working capital between 2023 and 2024, including any unusual or non-recurring expenses or asset disposals.
• Obtain management accounts or cash flow statements to assess operational liquidity and profitability trends, since profit and loss details are not publicly available.
• Investigate the reason for the reduction in workforce and any operational impact on service delivery or revenue generation.
• Confirm there are no contingent liabilities or off-balance sheet obligations that might pose solvency risks.
• Verify director and shareholder intentions regarding future funding or business strategy to address financial weakening.