COMPUTER ROOM SERVICES LTD

Executive Summary

COMPUTER ROOM SERVICES LTD is a newly incorporated micro-entity with negative net assets and long-term liabilities exceeding its asset base, posing a high solvency risk. While regulatory filings are current and governance appears sound, the limited financial history and small scale raise concerns about operational sustainability. Further due diligence should focus on liability terms and capital support plans.

COMPUTER ROOM SERVICES LTD - Analysis Report

Company Number: 14924524

Analysis Date: 2025-07-20 11:24 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets (£-3,024) as of the last accounting date, indicating solvency concerns. The presence of liabilities due after more than one year (£6,696) exceeding total assets less current liabilities (£4,272) further suggests potential financial distress. The company is very recently incorporated (June 2023) and has minimal operating history, adding uncertainty around operational stability.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows shareholders’ funds at negative £3,024, which is a clear red flag for solvency risk.
• Long-term Liabilities Greater than Assets: Creditors due after one year (£6,696) exceed net assets, indicating potential difficulties in meeting long-term obligations.
• Limited Operating History and Scale: Incorporated less than a year ago, with only one employee and micro-entity filings, indicating a very small and potentially fragile business with limited financial track record.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance in that respect.
• Directors with Full Control and Local Presence: Both directors hold significant control and reside locally, which may facilitate quick decision-making and oversight.
• Diverse Industry Activities: The company’s SIC codes cover computer repair, retail, printing, and other services, which may allow some operational flexibility.

4. Due Diligence Notes:

• Review detailed breakdown and nature of the long-term liabilities (£6,696) to assess repayment terms and creditor relationships.
• Clarify the reason for negative net assets and whether shareholders have injected capital or intend to do so to restore solvency.
• Investigate operational cash flows and business model viability given the small scale and early stage of the company.
• Confirm no director disqualifications or adverse conduct records, although none are indicated here.
• Assess related party transactions or financial support arrangements given the directors’ significant control.