APEX DECORATING CONTRACTS LTD
Executive Summary
APEX DECORATING CONTRACTS LTD is a very recently formed private limited company with minimal financial resources and no operational history, resulting in high solvency and liquidity risk at present. While regulatory compliance is currently satisfactory, the lack of trading activity and financial substance necessitates careful ongoing monitoring and further investigation into business plans and management capability. Investors should exercise caution until clearer evidence of operational viability emerges.
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This analysis is opinion only and should not be interpreted as financial advice.
APEX DECORATING CONTRACTS LTD - Analysis Report
Risk Rating: HIGH
Justification: The company is newly incorporated (September 2023) with minimal operating history, no employees, and negligible financial resources (cash balance and net assets of £1). This indicates a very limited financial base and operational activity, posing significant solvency and liquidity risk.Key Concerns:
- Extremely Low Financial Base: With only £1 in cash and net assets, the company lacks working capital to support operations or meet obligations.
- No Revenue or Profit Data: The absence of a profit and loss account filing and no reported turnover or expenses suggests the business has not yet generated income or incurred costs, limiting insight into operational viability.
- Zero Employees and Limited Activity: No staff and lack of operational data imply the company may not yet be actively trading, increasing uncertainty about future sustainability.
Positive Indicators:
- Compliance with Filing Deadlines: All statutory filings including accounts and confirmation statements are up to date, indicating good regulatory compliance so far.
- Clear Governance Structure: Directors and persons with significant control are identified and appear to be resident in the UK, reducing transparency concerns.
- Small Company Reporting: Utilization of small companies regime and exemption from audit is appropriate for the scale and age of the company.
Due Diligence Notes:
- Investigate the business plan, funding sources, and future revenue projections to assess operational sustainability.
- Clarify whether any trading has commenced post year-end and if there are contracts or orders secured.
- Confirm the relationship and background of directors to evaluate management capability and potential risks.
- Monitor future filings for profit and loss accounts and cash flow statements to assess liquidity trends.
- Verify absence of director disqualifications or adverse conduct records.
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