CTRL ALT ESCAPE LTD

Executive Summary

CTRL ALT ESCAPE LTD shows clear signs of financial distress with ongoing negative net assets and a working capital deficit, raising substantial solvency and liquidity concerns. While statutory filings are current and the company remains operational, the financial position indicates risk to creditors and investors without further financial support or operational turnaround. Close scrutiny of cash flows, debt obligations, and management plans is essential before considering investment.

CTRL ALT ESCAPE LTD - Analysis Report

Company Number: 12488994

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: HIGH

Justification: CTRL ALT ESCAPE LTD exhibits significant financial distress, evidenced by persistent negative net assets and net current liabilities over multiple years. The company’s liabilities consistently exceed its current assets, indicating solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net assets have been negative since incorporation and worsened from £-12,635 in 2020 to £-13,489 in 2024, signaling accumulated losses that erode shareholder equity.

• Persistent Working Capital Deficit: Net current liabilities stand at £-8,777 as of March 2024, reflecting an inability to cover short-term obligations with available current assets, raising liquidity concerns.

• High Level of Debt Relative to Assets: Current and long-term bank loans total approximately £8,439 (2024), which, combined with other creditors, significantly outweighs the company’s cash and other current assets (£4,027), suggesting financial strain and potential difficulty in meeting obligations.

3. Positive Indicators:

• Up-to-Date Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance in terms of reporting.

• Active Website and Operational Presence: The company maintains an active website promoting its escape room business, suggesting ongoing commercial activity and customer engagement.

• Recent Board Changes: Appointment of two new directors in October 2024 may signal efforts to revitalize management and potentially restructure or improve operations.

4. Due Diligence Notes:

• Examine Cash Flow and Profitability: Since income statements are not filed publicly, review internal records or management accounts to assess operational cash flow and whether the company is generating sufficient revenue to service its debt.

• Assess Debts and Creditor Terms: Investigate the nature, repayment terms, and security of bank loans and other creditors to understand refinancing risks and potential liabilities.

• Review Directors’ Strategy: Understand the rationale behind recent director changes and any strategic plans to address financial deficits and improve business performance.

• Evaluate Impact of Negative Equity: Determine if shareholders or related parties provide ongoing financial support or if insolvency procedures may be imminent.

• Confirm No Director Disqualifications: Verify that none of the current or former directors have disqualification records or regulatory issues that could impair governance.

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