DELPHI TRADING LIMITED

Executive Summary

Delphi Trading Limited demonstrates a high risk profile due to persistent and worsening negative net assets and current liabilities exceeding current assets, indicating serious solvency and liquidity issues. While the company remains compliant with filing requirements and active in status, the absence of employees and minimal asset base raise concerns about operational sustainability. Further investigation into the company’s trading activities and financial strategy is recommended to assess potential recovery options.

DELPHI TRADING LIMITED - Analysis Report

Company Number: 12845484

Analysis Date: 2025-07-20 15:28 UTC

1. Risk Rating: HIGH
   The company exhibits persistent and increasing net liabilities over multiple years, with net current liabilities worsening from -£4,134 in 2020 to -£12,102 in 2024. This indicates a significant solvency risk and challenges in meeting short-term obligations.

2. Key Concerns:

   • Solvency Risk: The company has consistently negative net assets and net current assets, suggesting it is insolvent on a balance sheet basis.
   • Liquidity Concerns: Current liabilities greatly exceed current assets, highlighting potential cash flow constraints and difficulty in settling debts as they fall due.
   • Operational Stability: The company has zero employees and minimal reported assets, raising questions about ongoing trading activity and revenue generation to sustain operations.

3. Positive Indicators:

   • Compliance: The company is up to date with its filing obligations, including accounts and confirmation statements, with no overdue filings noted.
   • Active Status: The company remains actively registered and is not in liquidation or administration, suggesting it has not yet triggered formal insolvency proceedings.
   • Clear Ownership Structure: Two directors/shareholders hold 25-50% shares each, which may facilitate decision-making and operational oversight.

4. Due Diligence Notes:

   • Investigate the nature of the company’s trading activities and revenue streams, given the micro-entity status and minimal current assets.
   • Review the management’s plans or evidence for addressing the ongoing negative equity and working capital deficit to understand how the company intends to restore financial health.
   • Assess any contingent liabilities or off-balance sheet obligations that may further impact financial stability.
   • Confirm whether there are any director loans or related party transactions contributing to the liabilities.
   • Explore whether the company’s business model and sector (SIC 82990 - Other business support services) are viable and if any external funding or restructuring is anticipated.