SKIN IN THE GAME GROUP LTD

Executive Summary

Skin In The Game Group Ltd exhibits significant financial distress characterized by escalating net liabilities and insufficient current assets to cover immediate liabilities, indicating high solvency and liquidity risk. While the company maintains regulatory compliance with filings and is FCA-regulated, its minimal operational scale and worsening financial position raise substantial concerns about sustainability. Investors should conduct thorough due diligence on the company’s financial health, business viability, and management strategy before considering engagement.

SKIN IN THE GAME GROUP LTD - Analysis Report

Company Number: 14338473

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns, with net liabilities worsening over recent years and negative working capital. The financial position indicates an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Solvency Weakness: Net liabilities increased from £4,538 in 2023 to £9,673 in 2024, indicating a deteriorating balance sheet and negative shareholder equity.
• Liquidity Shortfall: Current liabilities (£10,952) substantially exceed current assets (£2,459), resulting in net current liabilities of £8,428, posing a risk to meeting immediate financial obligations.
• Operational Scale and Sustainability: The company is categorized as a micro-entity with only one employee (including directors), limited capital (£165.44 share capital), and negative retained earnings, raising concerns about operational stability and capacity to generate sustainable revenue.

3. Positive Indicators:

• Compliance and Filing: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns, indicating good regulatory compliance and governance in this respect.
• Active Status and FCA Regulation: The company is active, and its website claims FCA regulation, which may suggest adherence to relevant industry standards and oversight.
• Clear Ownership: The presence of a named significant control person with disclosed shareholding and voting rights provides transparency on ownership.

4. Due Diligence Notes:

• Financial Performance and Revenue: Further investigation into the company’s income statement and cash flow statements is needed to understand the source of losses and operational cash flows.
• Business Model Viability: Evaluate the company’s business plan, revenue streams, and customer base given the negative net assets and limited employee count.
• Director and Management Review: Assess the background, financial expertise, and strategic plans of the current director, Scott Robert Newall, especially after the resignation of the co-director in late 2023.
• FCA Registration Verification: Confirm the company’s FCA regulatory status independently to validate compliance claims.
• Capital Injection Plans: Inquire whether there are plans for additional capital or restructuring to address the negative equity and liquidity gaps.