CompaniesInTheUK

ACES COUTURE LIMITED

Company number 05612552 ·

Active

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Investment Risk Analysis: ACES COUTURE LIMITED

1. Risk Rating: HIGH

Justification: The company is balance sheet insolvent with negative net assets of approximately £140,604, carries persistent and growing current liabilities with virtually no cash reserves, and demonstrates minimal evidence of active trading operations. The overdue filing status and static asset values across multiple years compound concerns about both financial viability and governance quality.

2. Key Concerns

Concern 1: Balance Sheet Insolvency

The company's net assets are deeply negative at (£140,604) as at 31 August 2024, with total liabilities of £335,049 vastly exceeding total assets of £192,103. This insolvency position has persisted for at least seven consecutive years (tracing back to at least 2016). While the company continues to operate, there is no visible mechanism for restoring solvency—liabilities grew by approximately £19,671 in the latest year alone (from £315,378 to £335,049), while total assets remained entirely static at £192,103 for the third consecutive year.

Concern 2: Severe Liquidity Deficit

Net current liabilities stand at (£145,001), meaning the company cannot meet its short-term obligations from current assets. The last reported cash position was merely £20 (August 2021), and no cash figure has been disclosed since. Creditors due within one year (£335,049) dwarf current assets (£187,706 plus £2,342 in prepayments) by a factor of approximately 1.76x. The company's ability to continue as a going concern appears entirely dependent on creditor forbearance or related-party support, neither of which is disclosed in the micro-entity accounts.

Concern 3: Suspicious Financial Staticity and Operational Inactivity

Total assets have remained at exactly £192,103 for three consecutive years (2022, 2023, 2024), with fixed assets unchanged at £4,397 and current assets unchanged at £187,706. This is highly atypical for an active trading business and strongly suggests either: (a) the business is effectively dormant or non-trading while liabilities accrue, or (b) there are accounting irregularities. The company reports zero employees throughout, and the nature of business (online retail) would normally show inventory turnover, debtor movements, or cash flow variability. The absence of any such movement is a significant red flag.

3. Positive Indicators

  • Longevity: The company has been incorporated since November 2005, surviving for nearly 20 years. Despite persistent insolvency, the company has not entered formal insolvency proceedings, suggesting creditors may have accommodated the position—possibly due to related-party relationships.

  • No Formal Insolvency Proceedings: The company is not in liquidation, administration, or receivership. It remains classified as Active, and the confirmation statement is up to date (not overdue).

  • Apparent Debt Reduction (Historical): Between 2019 and 2022, total liabilities reduced from £392,777 to £315,227, suggesting some effort to manage the debt position, though this progress has now reversed.

4. Due Diligence Notes

Item Investigation Required
Creditor Composition Determine whether the £335,049 in creditors is owed to related parties (the PSCs) or third parties. Micro-entity accounts do not require disclosure of related-party balances. If debts are owed to the directors/PSCs, they may be subordinated, which changes the risk profile significantly.
Going Concern Basis The accounts contain no explicit going concern statement or director's assessment. Given the persistent negative net assets, investigate whether there is a formal assessment of the company's ability to continue trading, and what support (if any) has been committed by shareholders or creditors.
Overdue Filing Status The accounts are marked as overdue, yet the latest filed accounts show approval date of 15 May 2026. Clarify the current filing status with Companies House and determine whether penalties have been incurred. Late filing of a company already showing governance weaknesses compounds risk.
Nature of Fixed/Current Assets £187,706 in current assets with zero employees and no visible trading activity warrants investigation. Request a breakdown—what comprises these current assets? If primarily inventory or intangible assets, recoverability is questionable. The static nature suggests potential impairment or obsolescence.
Business Activity Verification The company lists SIC code 47910 (retail sale via mail order/Internet) yet shows zero employees and no trading dynamics. Investigate whether the company is actually trading, has ceased operations, or is being used as a vehicle for another purpose. Cross-reference with VAT registrations, website activity, and trading disclosures.
Director Disqualification Check Verify whether Rajnee Jerath has any director disqualification records or prior insolvencies associated with other appointments. The concentration of control (sole director, secretary, and >75% shareholder) increases key-person risk.
Name Change History The company has changed its name three times (from NORHAM HOUSE 1048 LIMITED → TULSI IMPORTS LIMITED → CONTOUR CLOTHING LIMITED → ACES COUTURE LIMITED). Investigate the reasons for each change and whether they correspond with shifts in business model, asset transfers, or other restructuring that may affect creditor positions.
Inter-Company Relationships Determine whether the company has transactions with other entities controlled by the Jerath family. The PSC register shows both Rajnee Jerath (>75%) and Rajan Kumar Jerath (25-50%)—explore whether related entities exist that could affect this company's financial position.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 8 September 2026