RADIO KUBE LIMITED

Executive Summary

Radio Kube Limited demonstrates considerable solvency and liquidity risks, with liabilities far exceeding assets and heavy reliance on director loans for funding. While the company complies with regulatory requirements and remains active, its financial position raises serious concerns about operational sustainability. Further due diligence is essential to understand management’s plans and the company’s ability to continue as a going concern.

RADIO KUBE LIMITED - Analysis Report

Company Number: 12823768

Analysis Date: 2025-07-29 21:07 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets and net current assets with liabilities vastly exceeding current assets. The financial statements show deteriorating solvency and liquidity positions over multiple years, indicating a high risk of financial distress.

2. Key Concerns:

   • Severe Negative Net Assets: Shareholders' funds are deeply negative (£-73,787 as of 2024), indicating accumulated losses and erosion of capital.
   • Liquidity Mismatch: Current liabilities (£79,216) far exceed current assets (£2,643), resulting in a large net current liability (£-76,573), which poses a substantial risk to meeting short-term obligations.
   • Reliance on Director Loans: A substantial portion of current liabilities are loans from directors (£79,002), suggesting the company is dependent on related-party funding to sustain operations, which may not be a sustainable or long-term solution.

3. Positive Indicators:

   • Timely Filing and Compliance: The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory governance.
   • Active Trading Status: The company remains active with no indication of liquidation or administration processes underway.
   • Tangible Fixed Assets: Modest investment in computer equipment (£2,787 net book value) shows some asset base beyond cash, although limited.

4. Due Diligence Notes:

   • Investigate the terms and sustainability of director loans, including repayment plans and any associated risks.
   • Review the company’s business model and revenue generation capability given zero employees and significant ongoing losses.
   • Assess the going concern assumption and whether management has plans or access to further funding to address liquidity shortfalls.
   • Confirm accuracy and completeness of financial information, especially given negative debtors and absence of profit and loss account filing.
   • Examine any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.