COMPREHENSIVE RISK HOLDINGS LIMITED

Executive Summary

Comprehensive Risk Holdings Limited demonstrates significant financial stress, with negative equity and net current liabilities persisting over multiple years. While regulatory compliance and director involvement are positive factors, the company's liquidity and solvency risks are elevated, warranting careful scrutiny of intercompany transactions and underlying business viability before investment consideration.

COMPREHENSIVE RISK HOLDINGS LIMITED - Analysis Report

Company Number: 13438941

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and shareholder funds, indicating ongoing losses or capital erosion. Its ability to meet short-term obligations is compromised, and reliance on related party transactions and director support raises concerns about financial stability.

2. Key Concerns:

• Negative Working Capital: The company shows net current liabilities of £3,196 as of July 2024, worsening from previous years, reflecting liquidity pressure.
• Negative Shareholders' Funds: The retained earnings deficit (£3,096) and negative equity position suggest the company has accumulated losses beyond its initial share capital, undermining solvency.
• Related Party Dependence: Large debtors and creditors balances are owed to/from group undertakings, indicating heavy intercompany reliance which may mask true operational cash flows and financial health.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory accounts and confirmation statement filings, reflecting compliance with regulatory requirements.
• Director Support and Control: The sole director, who controls 75-100% of shares, is actively involved and has expressed confidence in going concern based on forecast reviews and personal support.
• Small Company Status & Exemption: Filing under the small companies regime with exemption from audit reduces administrative burden and may indicate a simplified business model.

4. Due Diligence Notes:

• Review intercompany balances with group undertakings to assess collectability and impact on liquidity.
• Examine cash flow forecasts and director support commitments to confirm the company's ability to meet obligations in the near term.
• Investigate the operational model and sources of revenue or funding, since no employees are reported and activity appears limited to holding company functions.
• Consider potential contingent liabilities or off-balance sheet obligations that could exacerbate financial risks.