XOSSWORLD LTD

Executive Summary

Xossworld Ltd exhibits high financial risk characterized by worsening negative net assets and substantial liquidity deficits over recent years, raising significant concerns regarding its ability to meet short-term liabilities and maintain solvency. While regulatory compliance is current and governance appears stable under a sole director, the company’s operational sustainability and financial health warrant close scrutiny before any investment consideration. Further investigation into cash flows, liabilities composition, and strategic plans for financial recovery is strongly recommended.

XOSSWORLD LTD - Analysis Report

Company Number: 13316709

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   The company shows persistent and worsening negative net assets and net current liabilities over the last three financial years, indicating significant solvency and liquidity risks. The most recent accounts report net liabilities of £2,197 and net current liabilities of £9,757, which suggests the company is unable to cover short-term debts with current assets.

2. Key Concerns:

• Solvency deterioration: The company moved from a modest positive net asset position (£2,612) in 2021 to increasingly negative net assets (£-2,197) by 2024. This trend signals an erosion of equity and potential insolvency risk.
• Severe liquidity constraints: The negative net current assets of £-9,757 imply the company’s current liabilities far exceed its current assets, raising concerns about its ability to meet short-term obligations as they become due.
• Lack of diversification and scale: As a micro-entity with only one director and one employee, operating in niche artistic and performing arts activities, the company may face operational sustainability challenges, particularly with limited financial resources and no apparent external capital injection.

3. Positive Indicators:

• Compliance with filing requirements: The company is up to date with its accounts and confirmation statement filings, which reduces regulatory compliance risks.
• Stable ownership and governance: The sole director and 100% owner is consistent, which can simplify decision-making and accountability.
• No sign of formal insolvency proceedings: The company is active and not in liquidation, administration, or receivership as of the latest information.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and profit & loss details (not provided here) to understand operational cash generation or losses.
• Clarify the causes behind the rapid increase in current liabilities and whether there are overdue creditor payments or contingent liabilities.
• Review any plans or recent capital injections intended to address the negative equity and liquidity positions.
• Assess the business model’s viability and revenue streams given the artistic and performing arts SIC codes, which may be vulnerable to external market conditions.
• Confirm whether related party transactions or director loans exist that may impact financial stability.