REMEMBER ME ALWAYS LTD
Executive Summary
Remember Me Always Ltd is a newly incorporated dormant company with minimal trading and limited operating history. The financials show reliance on a start-up loan used for non-operational expenses, resulting in liquidity and solvency risks. While regulatory compliance is up to date and equity appears sufficient, the lack of revenue and cash flow pose significant concerns regarding operational sustainability.
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This analysis is opinion only and should not be interpreted as financial advice.
REMEMBER ME ALWAYS LTD - Analysis Report
Risk Rating: HIGH
Justification: The company is dormant with no meaningful trading activity and has significant liabilities in the form of a loan classified as debtors and creditors. The limited operating history, negative cash flow indications, and reliance on a start-up loan present solvency and liquidity concerns.
Key Concerns:
Dormant Status with Minimal Trading: The company has not generated material revenue (only 5 sales under £300) since incorporation, indicating no operational cash inflows.
Liquidity Risk from Loan Usage: The director used the start-up loan, which is now recorded as a debtor of £46,440 and a corresponding creditor of the same amount, suggesting funds have been drawn but not repaid or converted into productive assets. Cash on hand is negligible (£29).
Negative Profitability and Operational Viability: The director reports operating at a loss, funding personal expenses from the business loan, which is not sustainable long term without a clear business plan or revenue growth.
Positive Indicators:
No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
Strong Equity Base Relative to Assets: Shareholder funds of £62,613 exceed net liabilities, indicating some capital buffer.
Single Experienced Director with Full Control: Clear ownership and governance structure with Mrs. Jennifer Anne Davies-Clark as sole shareholder and director.
Due Diligence Notes:
Clarify Nature of Debtors and Creditors Balances: Investigate the £46,440 loan recorded simultaneously as debtor and creditor, its terms, interest, and repayment status.
Assess Business Model and Revenue Generation Plans: Understand strategic plans for moving from dormancy to trading, including marketing, sales pipeline, and capital requirements.
Review Cash Flow Projections and Funding Sources: Evaluate how the company plans to improve liquidity given current cash constraints.
Verify Director’s Financial Support and Related Party Transactions: Since the director funded personal expenses from the loan, confirm whether this has been properly accounted for and any implications on company solvency.
Confirm No Hidden Liabilities or Contingent Risks: Although accounts show no audit requirement and limited disclosures, ensure no off-balance sheet liabilities exist.
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