DEFENCE TECHNICAL SERVICES LTD

Executive Summary

DEFENCE TECHNICAL SERVICES LTD is currently dormant with negative net assets and no active trading or employees, indicating a fragile financial state. The company is not a going concern and is effectively in a pause mode, awaiting improved market conditions. Immediate focus should be on addressing financial deficits and planning for potential restructuring or reactivation.

DEFENCE TECHNICAL SERVICES LTD - Analysis Report

Company Number: 12788517

Analysis Date: 2025-07-20 16:07 UTC

Financial Health Assessment for DEFENCE TECHNICAL SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company currently holds a dormant status and exhibits significant financial distress indicators. The net assets are negative (£-1,594) for the last three reporting periods, indicating liabilities exceed assets. The company has no active operations or employees as of the latest accounts. These symptoms suggest a fragile financial condition, with limited operational activity and no healthy cash flow.

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2. Key Vital Signs

Metric	Latest Value (FY 2025)	Interpretation
Status	Active, Dormant	No trading activity, company is not currently generating revenue
Net Assets	£-1,594	Negative net assets indicate liabilities exceed assets — a critical symptom of financial distress
Current Liabilities	£1,594	Short-term debts exist; no current assets to cover them
Share Capital	£1.00	Minimal capital invested; very thin equity base
Employees	0	No workforce, indicating no ongoing business operations
Going Concern Status	Not on going concern	Directors have ceased operations, planning to remain dormant until market conditions improve
Directors & Ownership	Single controlling director with 75-100% shares	Clear control, but no operational activity

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3. Diagnosis

The company is in a state akin to a "patient in remission" but with significant underlying issues. DEFENCE TECHNICAL SERVICES LTD has been dormant for at least the last financial year, with no trading or business activity. The financial statements reveal negative net assets, which is a critical sign of financial distress — akin to having "vital signs" out of normal range for a healthy business. The director has explicitly stated the company is not a going concern, meaning it is unlikely to continue trading unless market conditions change.

The absence of employees and no revenue generation are symptoms of a business in hibernation rather than active growth or recovery. The company maintains a minimal capital base (£1), which limits its capacity to absorb any financial shocks or invest in restarting operations.

Overall, the company’s financial health resembles a dormant patient: the business functions are effectively paused, with no immediate prospects for revival unless external conditions improve significantly.

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4. Recommendations

• Review Business Model and Market Conditions: The director should conduct a thorough market analysis to identify if and when reactivation of operations is viable.
• Address Negative Net Assets: Explore options to recapitalize the company or settle outstanding liabilities to restore positive equity.
• Consider Formal Restructuring: If prolonged dormancy is anticipated, formal restructuring or voluntary liquidation might be advisable to limit ongoing liabilities and costs.
• Maintain Compliance: Ensure timely filing of dormant accounts and confirmation statements to avoid penalties.
• Plan for Reactivation: Develop a clear business plan and financial projections for when the company re-enters active trading to avoid repeating financial distress.
• Engage Stakeholders: Communicate transparently with shareholders and creditors about the company’s status and future plans.

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