21ST ENERGY INTERNATIONAL LTD

Executive Summary

21ST ENERGY INTERNATIONAL LTD demonstrates significant solvency concerns with negative net assets and a reliance on related party funding. While regulatory compliance is satisfactory, the company’s minimal operational scale and negative working capital present high financial risk. Further investigation into related party arrangements and operational viability is recommended before considering investment.

21ST ENERGY INTERNATIONAL LTD - Analysis Report

Company Number: 12484934

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH

Justification: The company exhibits negative net assets and net current liabilities as of the latest financial year (2024), indicating insolvency on a balance sheet basis. The creditor balances significantly exceed current assets, and there is a material related party loan underpinning the liabilities. These factors collectively suggest elevated financial risk.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities amount to £3,844 as of 29 February 2024, with creditors (£4,599) far exceeding current assets (£755), reflecting a negative working capital position and potential inability to meet obligations.
• Related Party Exposure: A large portion (£4,201) of creditors are due to a related party (Melior Engineering Ltd), controlled by the director, which raises questions about the company’s independence and the sustainability of funding arrangements.
• Minimal Operational Scale: The company has only one employee (the director), minimal share capital (£100), and low turnover implied by the exemption filing status, which may indicate limited operational capacity and business risk.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, with no overdue filings reported, indicating good regulatory compliance.
• Clear Control and Governance: The director and controlling party is clearly identified, with consistent appointment since incorporation, suggesting stable governance structure.
• Exemption from Audit: The company qualifies for audit exemption under the small companies regime, consistent with its size and complexity, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party loan from Melior Engineering Ltd, including repayment prospects and any guarantees.
• Review trading activity and cash flow forecasts to assess operational viability and ability to address negative net assets.
• Confirm the extent of contingent liabilities or off-balance sheet commitments that may impact solvency.
• Assess whether the company has ongoing contracts or income streams sufficient to support future operations.
• Evaluate director’s plans for financial restructuring or capital injection to mitigate negative equity position.