Company Number: 13104565

Analysis Date: 2025-07-20 11:42 UTC

1ST FLOORING SOLUTIONS LTD – Risk Analysis

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net assets and working capital deficits, indicating solvency and liquidity concerns. Despite being active and compliant on filings, its financial position deteriorated notably in the latest year.

2. Key Concerns:

• Solvency Risk: The balance sheet at 31 March 2024 reports shareholders’ funds at -£1,108 and net current liabilities of £7,338. This negative equity and working capital imply the company may struggle to meet short-term and long-term obligations.
• Liquidity Concerns: Current assets are nominal (£15), while current liabilities remain significant (£7,353), suggesting very limited liquid resources to cover immediate debts.
• Operational Stability: The average number of employees dropped to nil in the latest year, signaling minimal or no operational activity. Coupled with declining fixed assets and no evident growth in assets or capital, business sustainability is questionable.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statements), demonstrating compliance with regulatory requirements.
• Ownership and control are consolidated under a single significant controller, potentially enabling decisive management actions.
• The company’s incorporation is recent (2020), so early-stage financial volatility may partially explain performance issues.

4. Due Diligence Notes:

• Investigate the company’s trading status and revenue generation, given the zero employees and minimal current assets.
• Review any contingent liabilities or off-balance sheet obligations that could exacerbate financial risk.
• Examine the directors’ plans or restructuring initiatives to address the negative equity and improve liquidity.
• Confirm whether related-party transactions or capital injections have occurred or are anticipated to support operations.
• Assess the impact of the company’s micro-entity accounting regime on transparency and completeness of financial information.