NEXANC LTD

Executive Summary

Nexanc Ltd is a micro private limited company with very limited financial resources and minimal net assets, raising high concerns regarding its solvency and operational sustainability. While the company remains compliant with regulatory filings and has no outstanding liabilities, its declining capital base and concentrated ownership present significant risks. Further investigation into trading performance and financial sustainability is essential before considering investment.

NEXANC LTD - Analysis Report

Company Number: 12653928

Analysis Date: 2025-07-29 18:24 UTC

1. Risk Rating: HIGH
   Justification: The company shows extremely limited financial resources with only £297 in net assets and current assets as of the latest accounts. There are no current liabilities, but the minimal asset base raises significant concerns about the company’s ability to meet obligations or sustain operations. The company is micro-sized with minimal capital (£1 share capital) and virtually no working capital buffer.

2. Key Concerns:

• Minimal Financial Resources: Net assets have steadily declined from £2,842 (2022) to just £297 (2024), indicating erosion of capital and possible operational losses or drawdowns.
• Limited Scale and Activity: The company has only one employee on average and micro-entity accounts with no audit, suggesting limited operations and potentially constrained cash flow.
• Single Controlling Shareholder: A single individual owns 75-100% shares, which may concentrate control and increase governance risk, especially if combined with limited financial transparency.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and governance adherence.
• No Current Liabilities: Absence of short-term creditors reduces immediate solvency pressure.
• Active Status: The company remains active since incorporation in 2020 without entering liquidation or administration.

4. Due Diligence Notes:

• Investigate recent trading activity and cash flow statements (not provided) to assess operational viability and income generation.
• Review director backgrounds and any related party transactions given the concentrated ownership and control.
• Confirm if the company has access to external funding or credit facilities to support operations and cover expenses.
• Assess the nature of the business in packaging activities (SIC 82920) to understand competitive positioning and revenue potential.
• Verify the reasons for the significant decline in net assets over the last three years and whether this is due to losses, asset disposals, or other factors.