CDL CLAIMS SERVICES LTD

Executive Summary

CDL CLAIMS SERVICES LTD shows significant financial stress with negative net assets and current liabilities exceeding current assets, highlighting solvency and liquidity risks. While compliance with filing requirements is up to date and governance is clear, the company’s operational scale appears minimal, raising concerns about sustainability. Further investigation into cash flow, capital plans, and business viability is essential before considering investment.

CDL CLAIMS SERVICES LTD - Analysis Report

Company Number: NI685459

Analysis Date: 2025-07-20 16:48 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (-£886) as of the latest financial year end, indicating that liabilities exceed assets. This points to solvency concerns despite its micro-entity status. The negative net current assets (-£1,356) also reflect liquidity challenges, as current liabilities exceed current assets significantly.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position suggests it may struggle to meet long-term obligations without additional capital injection or improved profitability.
• Liquidity Pressure: Current liabilities nearly double current assets, implying potential short-term cash flow difficulties.
• Operational Sustainability: Minimal fixed assets and very limited employee base (one employee) raise questions about scale and capacity to generate sustainable revenue.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date and not overdue, indicating good regulatory compliance to date.
• Control and Governance: Single director and 75-100% shareholder control by John Chambers may enable swift decision-making and clear accountability.
• Micro-entity Status: The company benefits from simplified reporting requirements, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative net asset position and whether there are plans for capital injection or turnaround.
• Review detailed cash flow statements or management accounts to assess ongoing liquidity and operational cash flows.
• Understand the business model and revenue streams given the very small scale and limited assets.
• Confirm the absence of contingent liabilities or off-balance-sheet obligations that may exacerbate financial risks.
• Assess the director’s background and financial support capacity given the sole control and ownership.