SOOQ LTD

Executive Summary

Sooq Ltd has demonstrated a positive shift into solvency with modest net assets and current assets exceeding liabilities as of January 2024, yet it remains a very small entity with a history of negative equity and reliance on director funding. Compliance with filing requirements is up to date, which supports governance reliability. Prospective investors should focus due diligence on operational cash flow, the director’s loan arrangements, and business scalability risks inherent in its small size.

SOOQ LTD - Analysis Report

Company Number: 13130596

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: MEDIUM
   While Sooq Ltd shows a positive turnaround in net assets as of the latest financial year ending January 2024, its historical position has included persistent net liabilities and low equity. The company’s current net assets of £2,514 and positive working capital indicate recent improvement, yet the overall scale and capital base remain very small and could constrain the ability to absorb shocks or support growth.

2. Key Concerns:

• Thin Capitalization: The company has minimal share capital (£1) and relies heavily on a director’s loan account (£2,878 current liability), suggesting dependence on related party funding rather than external equity or operational cash flow.
• Historical Losses and Negative Equity: For the first three years of operation, the company recorded negative net assets and shareholders’ funds, which may indicate initial operational losses or under-capitalization.
• Limited Operational Scale and Resources: With only one employee (the director) and low turnover implied by the exemption from audit and small asset base, there may be sustainability risks related to growth, market competition, or cash flow volatility.

3. Positive Indicators:

• Improved Financial Position in Latest Year: The company has moved to a positive working capital and net asset position in 2024, which is a sign of improving liquidity and solvency.
• Current Compliance: No overdue filings or accounts are reported, indicating sound regulatory compliance and timely reporting.
• Clear Business Activity: The SIC code classifies the company in online retail (mail order/internet), a sector with potential scalability and market reach.

4. Due Diligence Notes:

• Review detailed turnover and profit & loss figures to assess revenue trends and profitability (not provided here).
• Investigate the nature and terms of the director’s loan account to understand reliance on related party funding and potential repayment risks.
• Confirm the company’s cash flow management and ability to sustain operations given its small scale and recent financial history.
• Assess customer base, contracts, and market positioning in online retail to evaluate operational stability.