ABSTRACT CANVAS LIMITED

Executive Summary

Abstract Canvas Limited shows clear signs of financial distress with worsening liquidity and negative equity over recent years, raising significant solvency risks. While the company remains compliant with filing requirements and operates with a lean structure, investors should exercise caution due to the limited capital base and sole director control. Further detailed financial and operational assessment is recommended to understand prospects for recovery.

ABSTRACT CANVAS LIMITED - Analysis Report

Company Number: SC670825

Analysis Date: 2025-07-19 12:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by consistent negative net current assets and shareholders' funds over the last two years, culminating in a substantial net deficit at the most recent year-end.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by £21,232 as of 31 March 2024, worsening from prior years, indicating liquidity stress and potential difficulties meeting short-term obligations.
• Shareholders’ Funds Deficit: The equity position has deteriorated from a small positive in previous years to a £11,591 deficit, reflecting accumulated losses or capital erosion.
• Minimal Share Capital and Single Director Control: With only £1 share capital and sole control by one director (also the sole PSC), there is heightened governance risk and limited equity buffer.

3. Positive Indicators:

• Active Status and Compliance: The company is active with up-to-date filings for accounts and confirmation statements, indicating adherence to regulatory requirements.
• Micro Entity Filing and Limited Employees: The company operates as a micro-entity with only one employee, suggesting a lean operational structure which may reduce fixed costs.
• Industry Focus: Operating in specialised design and architectural activities, sectors that can be niche and potentially profitable if managed well.

4. Due Diligence Notes:

• Investigate the causes of deteriorating financial position, including revenue trends, cost management, and cash flow statements (not provided).
• Assess the director’s plans or actions to restore solvency and liquidity, such as capital injections or restructuring.
• Review any contingent liabilities or off-balance-sheet obligations not captured in the filings.
• Confirm there are no ongoing disputes, legal actions, or regulatory investigations given the financial distress signals.
• Examine trading activity and client base sustainability given the small scale and concentrated control.