ADDAAMO RESIDENTIAL SPACES LIMITED

Executive Summary

ADDAAMO RESIDENTIAL SPACES LIMITED is a newly incorporated dormant company with minimal financial activity and a nominal capital base of £10. It currently shows no signs of operational activity or distress but requires activation of business operations and capital investment to progress to a financially healthy state. Maintaining compliance and developing a clear business plan will be essential for its future financial wellness.

ADDAAMO RESIDENTIAL SPACES LIMITED - Analysis Report

Company Number: 14762227

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment of ADDAAMO RESIDENTIAL SPACES LIMITED

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1. Financial Health Score: D

Explanation:
The company is newly incorporated (March 2023) and currently classified as a dormant company with minimal financial activity. With only £10 in cash and net assets, there are no operational transactions or revenue generation. This results in a very low financial health score, reflecting a business in a nascent or inactive phase rather than an established, operational enterprise. The score "D" indicates that while the company is not in distress or insolvency, it shows "symptoms of financial dormancy" and limited operational vitality.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Cash at Bank	£10	Practically negligible operational liquidity.
Net Assets / Shareholders' Funds	£10	Minimal equity base; company capitalized only for incorporation.
Account Category	Dormant	No trading activity; no revenue or expenses recorded.
Company Status	Active	Legally operational but currently inactive financially.
Control	Owned 75-100% by Walters Capital Group Limited and Richard Walters	Clear ownership and control, no complex shareholder structure.

Interpretation:
The "vital signs" indicate a company in a dormant state—not generating cash flow or incurring liabilities. This is typical for a newly incorporated entity possibly holding assets or preparing to commence operations. The very low cash and equity levels mean the company is not yet "healthy" in an operational sense but is also not showing distress symptoms such as debt or losses.

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3. Diagnosis

• Dormancy Status: The company has taken advantage of the dormant company exemption under Section 480 of the Companies Act 2006, which allows it to file simplified accounts due to no significant accounting transactions.
• Operational Activity: There is no evidence of trading activity, revenue, or expenses during the reported period.
• Financial Strength: The company’s balance sheet is minimal, reflecting only its initial share capital of £10, indicating no business operations or asset holdings.
• Ownership and Control: Concentrated ownership with a single corporate entity and an individual director, facilitating straightforward governance.
• Risk: Currently low financial risk due to lack of liabilities, but also no operational traction or cash flow generation.

Overall Diagnosis: The company is in a "dormant but ready" state — akin to a patient who has just been admitted but shows no symptoms of illness or vitality yet. It is neither financially stressed nor operationally active.

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4. Recommendations

1. Activate Business Operations:
   To progress beyond dormancy, the company should plan and commence trading or investment activities. This will generate cash flow and build financial strength.

2. Capital Injection if Needed:
   Consider increasing capital beyond the £10 initial share capital to provide a buffer for initial expenses and investments.

3. Financial Planning and Forecasting:
   Establish a clear business plan with financial forecasts to monitor "vital signs" such as liquidity, profitability, and solvency once operations begin.

4. Regular Compliance:
   Maintain up-to-date filings for accounts and confirmation statements to avoid penalties and ensure regulatory compliance.

5. Monitor Governance:
   With sole control by Richard Walters and Walters Capital Group Limited, ensure robust governance practices to support growth and transparency.

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