CLARION PAYROLL SERVICES LIMITED

Executive Summary

CLARION PAYROLL SERVICES LIMITED demonstrates significant solvency and liquidity concerns with negative net assets and a working capital deficit, raising high risk for creditors and investors. While the company remains compliant with filing obligations, its limited operational history and financial position warrant careful scrutiny. Further investigation into liabilities and business viability is recommended before engagement.

CLARION PAYROLL SERVICES LIMITED - Analysis Report

Company Number: 14120638

Analysis Date: 2025-07-29 14:18 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk with negative net assets and net current liabilities as of the last financial year. The level of current liabilities exceeds current assets by £11,144, indicating potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are reported as -£11,144, signaling accumulated losses and erosion of capital.
• Working Capital Deficit: Current liabilities (£36,500) substantially exceed current assets (£25,356), which implies liquidity stress.
• Limited Operational History: Incorporated in 2022 with only one employee and limited financial data, the company’s operational sustainability is uncertain.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting regulatory adherence.
• Ownership Control: Concentrated ownership by a single individual with full control may facilitate swift decision-making.
• Small Company Exemption: The company has utilized small company reporting provisions, reducing audit burden and associated costs.

4. Due Diligence Notes:

• Investigate nature and terms of current liabilities to assess urgency and risk of default.
• Review cash flow projections and management plans to address the working capital deficit.
• Assess client base, contract stability, and growth strategy given the company’s bookkeeping services and recent incorporation.
• Confirm absence of director disqualification or adverse regulatory actions for the current director.
• Clarify reasons for negative retained earnings and any associated contingencies or provisions.