CANOON SOLICITORS LIMITED

Executive Summary

Canoon Solicitors Limited demonstrates significant financial challenges, notably persistent negative equity and liquidity shortfalls, which elevate solvency risk. While compliance with filing obligations is maintained, the very limited asset base and minimal revenue raise concerns about operational sustainability. Further investigation into creditor terms and future business plans is advisable before investment consideration.

CANOON SOLICITORS LIMITED - Analysis Report

Company Number: 12779321

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net liabilities of approximately £4,798 as of the latest accounts, with current liabilities of £5,000 exceeding current assets of only £202. This indicates a solvency risk and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative shareholders' funds and net liabilities persisting over multiple years, suggesting ongoing financial distress.
• Current liabilities substantially exceed current assets, indicating poor liquidity and potential cash flow difficulties.
• Very low turnover (£18,831 in 2022 with no reported turnover in 2023) and minimal asset base, raising concerns about operational sustainability.

3. Positive Indicators:

• The company remains active and has no overdue filings, showing compliance with statutory requirements.
• Micro-entity reporting and exemption from audit reduce administrative burdens, which may be appropriate given company size.
• Single director with direct experience as a solicitor, aligned with the company’s principal activity, possibly ensuring focused management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £5,000 creditors due after more than one year to assess potential restructuring or repayment plans.
• Clarify the absence of turnover in the most recent financial year and review business activity and revenue generation prospects.
• Review director’s plans to address the negative equity position and ensure business viability going forward.
• Confirm no contingent liabilities or off-balance sheet obligations exist that could exacerbate financial risk.