ABODE STAFF LTD

Executive Summary

Abode Staff Ltd shows significant financial risk with negative net assets and a working capital deficit in its first year, indicating solvency and liquidity challenges. While compliance with filings and active ownership are positive signs, the company’s financial position raises concerns about its ability to meet obligations and sustain operations without additional funding. Further detailed due diligence on creditor terms, cash flow, and business model viability is recommended.

ABODE STAFF LTD - Analysis Report

Company Number: 15398251

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to net liabilities of £8,223 within its first financial period. Current liabilities substantially exceed current assets, and shareholders’ funds are negative, indicating financial instability and risk of inability to meet obligations.

2. Key Concerns:

• Negative net current assets of £8,223 demonstrate a working capital deficit, raising liquidity concerns.
• Net liabilities and negative shareholders’ funds suggest the company is insolvent on a balance sheet basis, which is a red flag for sustainability.
• The company is newly incorporated (January 2024) with only one employee and limited financial history, increasing uncertainty about operational viability and capacity to generate cash flow.

3. Positive Indicators:

• The company is compliant with statutory filing requirements to date, showing no overdue accounts or confirmation statements, demonstrating good governance discipline.
• The director holds full ownership and control, which may facilitate swift decision-making and strategic direction.
• The business operates in a niche staffing sector (domestic staffing), with an active website and social media presence, suggesting marketing efforts to build the client base.

4. Due Diligence Notes:

• Investigate the nature of the creditors amounting to £9,196: terms, repayment schedules, and if these include any related party loans or trade payables.
• Review cash flow forecasts and funding plans to understand how the company intends to address the current working capital deficit.
• Assess contracts or agreements underpinning debtor balances (£876) for collectability and timing.
• Confirm if the director or shareholders have injected or plan to inject additional capital to support operations.
• Evaluate market demand and competitive positioning in the temporary domestic staffing sector to gauge long-term sustainability.
• Verify that the director has no adverse conduct records or prior disqualifications.