COMPARE BROKER LTD

Executive Summary

Compare Broker Ltd shows signs of financial distress with negative net assets and working capital deficits, indicating solvency and liquidity risks. While regulatory compliance and operational continuity are positives, the company’s limited capital and persistent financial shortfalls warrant caution and further investigation into its business sustainability and financial support mechanisms.

COMPARE BROKER LTD - Analysis Report

Company Number: 13242685

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and persistent net current liabilities, indicating solvency concerns. Despite being active and compliant with filings, the financials suggest ongoing liquidity stress and potential operational instability.

2. Key Concerns:

• Negative Net Assets: The company reported net assets of -£1,491 for the year ended 31 March 2024, worsening slightly from the prior year (-£1,396), which signals that liabilities exceed assets, raising solvency risk.
• Working Capital Deficit: Current liabilities (£5,572) exceed current assets (£4,081), resulting in negative net current assets (-£1,491), a warning sign of liquidity constraints in meeting short-term obligations.
• Minimal Share Capital and Micro Entity Status: With only £4 in share capital and classified as a micro entity, the company likely has limited financial resources and may face challenges scaling or absorbing shocks.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date and not overdue, reflecting good governance and regulatory compliance.
• Stable Workforce: The company maintains a small but stable employee base (2 employees), which may help control operating costs.
• Active Online Presence: An active website with social media engagement suggests an ongoing effort to maintain market visibility and client engagement.

4. Due Diligence Notes:

• Investigate the cause of persistent negative net assets and whether shareholder support or external financing is planned to restore solvency.
• Review detailed cash flow statements and creditor aging to assess liquidity management and risk of payment defaults.
• Assess business model viability and revenue generation capacity given the micro entity status and limited capital.
• Confirm no director disqualification or governance issues, noting current directors have no adverse records.
• Consider market and industry conditions for SIC code 82990 (Other business support services) to evaluate operational risks.