ASSISTED LIFESTYLE LIMITED

Executive Summary

ASSISTED LIFESTYLE LIMITED exhibits a high-risk financial profile due to its negative net assets and substantial working capital deficit as of the latest accounts. While the company maintains compliance with filing requirements and stable staffing, the significant deterioration in solvency metrics suggests liquidity and operational sustainability concerns that warrant thorough due diligence before investment consideration.

ASSISTED LIFESTYLE LIMITED - Analysis Report

Company Number: 13025722

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: HIGH
   The latest filed accounts for the year ending 29 November 2023 show a significant deterioration in the company’s financial position. Net current assets have turned negative at -£56,509 and total net liabilities stand at -£79,939, indicating insolvency on a balance sheet basis. This represents a substantial reversal from the previous year’s modest positive net assets of £184. Such negative equity and working capital deficits are strong indicators of solvency risk.

2. Key Concerns:

• Solvency and Negative Net Assets: The company’s balance sheet shows net liabilities of nearly £80k, a marked decline from prior years’ positive equity, raising serious concerns about its ability to meet obligations as they fall due.
• Worsening Liquidity Position: The current liabilities (£125,476) exceed current assets (£68,967) by a wide margin, suggesting potential cash flow difficulties to cover short-term debts.
• Lack of Fixed Assets and Limited Share Capital: With no fixed assets reported and minimal share capital (£100), the company appears to have limited tangible collateral or equity buffer to support its operations and liabilities.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current with its statutory filings, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Stable Employee Base: The average headcount remained consistent at 3 employees, suggesting operational continuity at a small scale.
• Experienced Director and PSC Transparency: The director and persons with significant control are clearly identified with no indications of disqualification or governance issues.

4. Due Diligence Notes:

• Review Cash Flow Statements and Profit & Loss Accounts: The summary accounts lack detailed P&L or cash flow data; examining these documents will clarify the causes of the negative net assets and assess ongoing operational cash generation or losses.
• Investigate Debt Structure: Clarify the nature and terms of current and long-term liabilities, especially the large creditor amounts, to assess refinancing risk or potential insolvency triggers.
• Confirm Business Model Viability: Given the SIC code (43390 - Other building completion and finishing), understand the revenue drivers and contract pipeline to evaluate sustainability amid financial stress.
• Director and Shareholder Support: Explore whether the directors or shareholders have provided any financial support, guarantees, or plans for recapitalisation.
• Check for Any Undisclosed Contingent Liabilities or Legal Issues: Such risks could exacerbate financial distress.