002-02092021 LTD

Executive Summary

002-02092021 Ltd is a micro-entity in the warehousing sector exhibiting sustained negative net assets and worsening liquidity over its initial three years. While compliant with filing requirements and stable in ownership, the company’s financial position presents a high risk to creditors and investors without clear evidence of operational turnaround. Further investigation into cash flows, going concern assumptions, and management strategy is advised.

002-02092021 LTD - Analysis Report

Company Number: 13603665

Analysis Date: 2025-07-29 16:41 UTC

1. Risk Rating: HIGH
   The company shows significant and increasing negative net current assets and shareholders' funds over its short operating history, indicating persistent financial distress and an inability to cover short-term liabilities with current assets.

2. Key Concerns:

• Negative Working Capital: The company’s net current liabilities have nearly doubled from £16,352 in 2023 to £29,482 in 2024, highlighting worsening liquidity issues.
• Persistent Shareholders' Deficit: Negative shareholders’ funds of £29,482 in 2024, worsening over 3 consecutive years, suggest accumulated losses and erosion of owner equity.
• Small Scale and Limited Financial Data: As a micro-entity with only 3 employees on average, limited operational scale may restrict revenue generation and ability to absorb losses or secure financing.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating regulatory compliance.
• Stable Directorship and Ownership: Single director and majority shareholder Michael Rademacher has been in place since incorporation, providing continuity in management.
• Exemption from Audit: While this reduces transparency, it lowers administrative burdens and costs for the small company.

4. Due Diligence Notes:

• Investigate Cash Flow and Revenue Generation: Review trading performance, contracts, and cash flow statements to understand how the company intends to improve liquidity.
• Assess Going Concern Status: Examine directors’ reports and any external financing arrangements to evaluate viability given ongoing negative net assets.
• Review Director’s Plans: Clarify strategic plans from Mr. Rademacher to address losses and funding gaps, including potential capital injections or cost reductions.