TYPICAL LTD

Executive Summary

Typical Ltd is a micro-entity with very limited financial resources and persistent negative working capital, indicating elevated liquidity and solvency risks. While the company remains compliant with filing obligations and active, its minimal asset base and operational scale raise concerns about its financial resilience. Further investigation into its cash flows and business model is recommended to fully understand its financial stability.

TYPICAL LTD - Analysis Report

Company Number: 12940570

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets (-£333) indicating liquidity issues, minimal net assets (£100), and very limited share capital (£100). These factors combined suggest a high risk of insolvency or financial distress.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£433) exceed current assets (£100) by a significant margin, indicating potential cash flow problems to meet short-term obligations.
• Limited Capital Base: The company’s share capital and net assets are extremely low (£100), limiting its financial buffer and ability to absorb losses.
• Operational Scale and Sustainability: With only one employee on average and minimal fixed assets, the company appears very small and possibly reliant on limited resources, raising concerns about its long-term operational viability.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements; last accounts and returns were filed on time.
• Active Status: The company is currently active and not in liquidation or any insolvency process.
• Clear Ownership and Management: The appointment and resignation of directors are documented and current director controls majority ownership, indicating governance clarity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess immediate payment obligations and creditor relationships.
• Review cash flow statements (if available) or bank statements to confirm liquidity position beyond balance sheet snapshots.
• Assess business model and revenue generation capacity given minimal assets and staffing to understand operational sustainability.
• Evaluate any contingent liabilities or off-balance sheet risks that may not be apparent from micro-entity accounts.
• Consider background checks on directors and PSCs for any regulatory or legal issues that could affect company stability.