SOVEREIGN INVENTORIES LIMITED

Executive Summary

Sovereign Inventories Limited is a newly formed micro-entity with a minimal net asset base and limited operational history. Current financials and compliance records indicate low immediate risk, but ongoing monitoring is advisable due to its early stage and sole director structure. Further due diligence on business viability and director capability is recommended to better understand long-term sustainability.

SOVEREIGN INVENTORIES LIMITED - Analysis Report

Company Number: 15112514

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: LOW
   The company is newly incorporated (September 2023), classified as a micro-entity, and shows minimal liabilities relative to current assets. No overdue filings or audit exemptions indicate compliance with regulatory requirements. The positive net current assets, although small, and the absence of any liquidation or administration status support a low risk rating at this stage.

2. Key Concerns:

• Limited operating history: Being less than one year old, there is no track record of financial performance or cash flow generation which raises uncertainty about future sustainability.
• Very small net asset base (£101): This minimal equity buffer offers little protection against unexpected liabilities or financial setbacks.
• Single director and sole shareholder structure: Concentration of control in one individual may pose governance and succession risks, potentially impacting operational stability.

3. Positive Indicators:

• Compliance with statutory filing deadlines: No overdue accounts or confirmation statements reduce regulatory risk.
• Net current assets are positive, indicating the company can currently meet short-term liabilities.
• Micro-entity accounting and exemption from audit reduce administrative burden and costs for this early stage company.

4. Due Diligence Notes:

• Investigate business plan and cash flow projections to assess operational viability and growth prospects given the limited financial history.
• Confirm the director’s experience and capacity to manage the company effectively as sole principal.
• Monitor subsequent filings and financial updates for signs of improved capitalization or emerging financial stress.
• Verify the nature and terms of any creditors included in current liabilities for contingent risks.