ANDRES INSPECTION LTD
Company number SC482288 · Monitor this company
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: ANDRES INSPECTION LTD
1. Risk Rating: HIGH
Justification: The company has operated with negative net assets for the majority of its 10-year history, indicating persistent technical insolvency. While the most recent year shows improvement, the fundamental financial position remains precarious with net current liabilities and minimal asset base. The company is entirely dependent on its sole director's willingness to defer claims on debts owed.
2. Key Concerns
Concern 1: Persistent Technical Insolvency
The company has reported negative net assets in at least 6 of the 10 years for which data is available. As of 31 July 2025, net liabilities stand at £287. Total liabilities (£3,007) exceed total assets (£2,720), meaning the company cannot cover its obligations from its balance sheet. This pattern of insolvency has been a recurring feature rather than an anomaly, suggesting structural rather than cyclical issues.
Concern 2: Severe Liquidity Deficiency
Net current liabilities of £287 in 2025 (improved from £788 in 2024) demonstrate the company lacks working capital to meet short-term obligations. Current assets of only £2,720 against current liabilities of £3,007 leave no margin for operational disruptions, delayed payments, or unexpected costs. The company appears to be trading on the tolerance of its creditors—predominantly the director himself.
Concern 3: Concentration of Control and Minimal Governance
Mr Michael Andres holds over 75% of shares, over 75% of voting rights, and the right to appoint and remove directors. He is the sole director. There are no checks, balances, or independent oversight. The accounts note "No description of principal activity"—an unusual omission that raises questions about transparency and operational clarity. This concentration means the company's continuity is entirely dependent on one individual.
3. Positive Indicators
- Filing Compliance: Both annual accounts and confirmation statements are current and not overdue. The company has maintained its registered status for over 10 years without regulatory intervention.
- Recent Improvement: Net assets improved from -£1,640 (2024) to -£287 (2025), and total assets grew from £644 to £2,720, suggesting some recovery in the latest period.
- Longevity: Despite persistent balance sheet weakness, the company has survived since 2014, indicating the director has sustained operations through personal financial support or creditor forbearance.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Director's Loan Account | The liabilities likely include amounts owed to Mr Andres personally. Understanding the terms, repayment expectations, and whether these are subordinated is critical to assessing true solvency risk. |
| Registered Address Discrepancy | The company overview lists 443 Dumbarton Road, Clydebank, but the filed accounts list Unit 34, Anniesland Business Park, Glasgow. Clarify which is current and whether this indicates a recent relocation. |
| Principal Activity | The explicit statement "No description of principal activity" is atypical. Investigate what the company actually does under SIC code 81100 (Combined facilities support activities) and why this was omitted. |
| Revenue and Profitability | Micro-entity accounts provide no profit & loss information. Obtain management accounts to assess whether the business generates sufficient revenue to cover operating costs and service debts. |
| Creditor Composition | The £3,007 in current liabilities requires breakdown—how much is owed to the director, how much to third parties, and are there any contingent liabilities? |
| Accruals Removal | 2024 showed £852 in accruals and deferred income; this is absent in 2025. Determine what this represented and why it was cleared. |
| Director Disqualification Check | Verify whether Mr Andres has any disqualification orders or involvement with other insolvent companies. |