ABERDEEN TECHNICAL SERVICES LIMITED

Risk Rating: HIGH Justification: The company's status is explicitly listed as "Liquidation," indicating an inability to continue operations and a formal process of winding up the business. This represents the highest level of financial and operational risk, as the company has effectively failed. While the last filed accounts (March 2022) showed positive net assets, the transition into liquidation confirms severe, terminal solvency issues.

Key Concerns: * Terminal Insolvency Status: The company is in liquidation. The registered office has been shifted to "C/O Meston Reid & Co," an insolvency practitioner, confirming that control has likely passed to a liquidator. This supersedes any positive indicators from the last filed financial statements. * Severe Leverage and Cash Flow Pressure: As of March 2022, the company held £764,063 in total bank loans (£356,875 due within one year and £407,188 due after). Against this, cash reserves had depleted significantly from £250,044 in 2021 to just £45,212 in 2022. The heavy reliance on debt financing and the director's loan (£94,656) placed immense strain on working capital. * COVID-19 Impact and Asset Quality: The 2022 accounts detail £250,171 in exceptional write-offs attributed directly to COVID-19 (£164,664 in bad debts and £85,507 in WIP reduction). This indicates a severe shock to operational stability, compromised asset quality, and a loss of revenue-generating capacity that the company could not absorb.

Positive Indicators: * Property Asset Base: The 2022 balance sheet shows £597,304 in net book value for land and buildings out of £615,142 in total fixed assets. This tangible asset base likely served as security for the substantial bank loans and may provide some recovery value for creditors in the liquidation process. * Historical Longevity: The company was incorporated in 1987, demonstrating over 34 years of operational history prior to its failure. This suggests the business was a viable, going concern for a significant period before succumbing to recent financial pressures. * Reported Net Assets: At the time of the last filed accounts (March 2022), the company reported net assets of £326,617 and a positive net current asset position of £118,663. While the liquidation status renders this historical, it shows the company was not balance-sheet insolvent at that specific date.

Due Diligence Notes: * Liquidation Parameters: Identify the exact date of the liquidation appointment and whether it is a Creditors' Voluntary Liquidation (initiated by directors/shareholders) or Compulsory Liquidation (initiated by a creditor via court order). This will clarify the catalyst for the company's failure. * Realizable Value of Assets: Investigate the current market value of the land and buildings (£597k book value) and the stock (£280k book value). In a liquidation, forced-sale values are typically far below book value, and the high stock balance may be significantly impaired or obsolete. * Director's Loan Recovery: Assess the nature of the £94,656 director's loan classified as a current creditor. Determine if this represents an overdrawn director's current account, which the liquidator would likely seek to recover from the directors personally. * Filing Delinquency: Both the annual accounts and the confirmation statement are overdue. Clarify whether the liquidator has assumed responsibility for these filings or if the company is in default of statutory requirements, which could compound administrative penalties.