THE IMAGINATION HUB LTD

Executive Summary

The Imagination Hub Ltd, a newly incorporated micro-entity, presents a high risk profile due to significant negative net assets and current liabilities at its first year-end. While regulatory filings are up to date and ownership is centralized, the company’s financial position raises serious concerns about its solvency and operational sustainability. Further due diligence on liabilities and funding plans is essential before considering investment.

THE IMAGINATION HUB LTD - Analysis Report

Company Number: 14937460

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities (£-25,806) at its first financial year-end, indicating poor solvency and inability to meet obligations without external funding. Negative net current assets and shareholders’ funds further underscore financial distress.

2. Key Concerns:

• Negative net assets and net current liabilities highlight severe solvency risk and potential inability to cover short-term debts.
• No employees and minimal current assets (£1,523) suggest limited operational activity and possibly no revenue generation as yet, raising sustainability concerns.
• The company is very newly incorporated (June 2023) and already shows negative equity, indicating initial funding or asset valuation issues.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing regulatory compliance to date.
• Sole director and 100% shareholder control (Lena Dalal) may facilitate swift decision-making and capital injections if required.
• Micro-entity accounting standards applied, appropriate for company size, simplifying compliance.

4. Due Diligence Notes:

• Investigate the nature of current liabilities (£27,329) to assess creditor risk and maturity profile.
• Clarify the reason for negative net assets: whether due to start-up losses, shareholder loans, or other factors.
• Review business plan and funding sources to understand how the company intends to achieve operational stability and improve liquidity.
• Confirm the absence of any related party transactions or guarantees that may impact financial risk.
• Assess director’s capacity to inject further capital or secure external financing.