BOARD OF STANDARDIZATION AND QUALITY CONTROL LTD

Executive Summary

The Board of Standardization and Quality Control Ltd is in its first year of operations and already reports a small but negative net asset position and accumulated losses, coupled with minimal cash resources. While regulatory compliance filings are up to date, the company’s financial position and lack of operational history indicate high solvency and liquidity risks. Further due diligence is recommended to assess the business model viability and funding strategy going forward.

BOARD OF STANDARDIZATION AND QUALITY CONTROL LTD - Analysis Report

Company Number: 15436837

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-839) and accumulated losses (£-840) within its first financial year, indicating initial capital erosion. The minimal cash balance (£1) and lack of significant assets raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative shareholders' funds and net assets suggest insolvency risk if losses continue.
• Extremely low liquidity with only £1 cash on hand signals potential cash flow difficulties.
• The company is newly incorporated (Jan 2024) with limited operational track record, increasing uncertainty about business sustainability.

3. Positive Indicators:

• The company is compliant with filing requirements; no overdue accounts or confirmation statements are reported.
• Sole director and controlling shareholder is also company secretary, indicating centralized governance and control.
• Activities cover regulated and professional services, which could imply potential for stable contracts if properly developed.

4. Due Diligence Notes:

• Investigate the source and nature of the £840 loss in the first year and plans to restore profitability.
• Clarify the working capital management and funding arrangements given negligible cash and negative equity.
• Review the business plan and pipeline of contracts in the regulation, testing, and accounting service sectors to assess operational viability.
• Confirm no related party transactions or financial support commitments exist that are not disclosed.
• Verify director’s background and capacity to manage and fund the company through early loss periods.