BURTECH PRECISION ENGINEERING LIMITED

1. Risk Rating: HIGH

Justification: Burtech Precision Engineering Limited presents a fundamental contradiction between its outward-facing commercial presence (an active website describing itself as a supplier of machined line stopping and hot tapping equipment) and its filed statutory reality (a dormant company that has never traded, with zero income, zero expenditure, and zero employees since incorporation in March 2021). This disconnect raises serious questions about the legitimacy and purpose of the entity, and whether business activities are being conducted elsewhere or misrepresented.

2. Key Concerns:

• Website/Dormant Status Mismatch: The company website (burtechprecision.com) actively markets the company as supplying "machined line stopping and hot tapping equipment" and offering "efficient and precise industrial pipeline solutions." However, the filed accounts explicitly state: "The company has not traded during the year or the preceding financial period. During this time the company received no income and incurred no expenditure." This discrepancy is material. Either the website is misleading, or the accounts do not reflect actual trading activity — both scenarios are concerning from an investor perspective.

• Prolonged Dormancy Without Commercial Activity: The company has been incorporated for nearly four years (since March 2021) and has remained dormant throughout, with only £100 in share capital on the balance sheet and zero employees every year. A company that has never generated revenue in four years of existence raises questions about its viability, purpose, and whether it serves as a vehicle for something other than genuine trading.

• Potential for Related Entity Confusion or Asset Diversion: The registered address (First Avenue, Flixborough, Scunthorpe) references "Burtech Engineering Ltd" — a similarly named but distinct entity. The two Burnett directors hold significant control (Kenneth with 50-75% ownership and director appointment rights). There is a risk that business activity described on the website is actually conducted through a different entity, potentially creating confusion for creditors or counterparties about which entity they are contracting with.

3. Positive Indicators:

• Filing Compliance: All statutory filings are current and not overdue. The confirmation statement was made up to November 2025, and accounts to December 2024 were filed by September 2025 — both within statutory deadlines.

• No Insolvency Proceedings: The company is not in liquidation, administration, or receivership. No adverse status flags are present.

• Transparent Ownership Structure: The PSC register is complete and up to date, with both directors' holdings clearly documented. The structure is straightforward with two individuals (likely family members given the shared surname) rather than complex layered ownership.

• Clean Director Records: Based on the available data, there are no disqualification orders recorded against either director.

4. Due Diligence Notes:

• Investigate the Website Actively: Verify when burtechprecision.com was registered, its content history, and whether it has ever facilitated actual transactions. Determine whether the website constitutes a misleading representation under the Companies Act or Consumer Protection regulations.

• Clarify Relationship with "Burtech Engineering Ltd": The registered office notation references a similarly named entity. Establish whether Kenneth and Glen Burnett are also officers of that entity, whether it is actively trading, and whether there is any transfer of business, assets, or liabilities between the two companies. This is critical to understanding whether the dormant status of this company is legitimate or whether it exists as a shell alongside an active trading entity.

• Confirm Purpose of Prolonged Dormancy: Engage directly with the directors to understand why a company with a commercial website has remained dormant for four years. Legitimate reasons could include awaiting regulatory approvals, securing contracts, or holding intellectual property — but these should be documented and verifiable.

• Verify Whether Any Trading Has Commenced Post-Year End: The accounts cover the period to 31 December 2024. Given the existence of the website, determine whether the company has begun trading since that date, which would not yet be reflected in filed accounts.

• Assess Counterparty Risk: If considering entering into contracts with this entity, confirm which legal entity will be the contracting party. Do not rely on website representations alone — verify the trading status directly with the directors and through Companies House.