Investment Risk Analysis: Devon Wallcare Limited (06951633)

1. Risk Rating: HIGH

This company presents severe solvency and operational risks. The latest filed accounts explicitly state the company has ceased to trade and are prepared on a break-up basis. The company is subject to a proposal to strike off, has negative net assets, zero cash, and an overdue confirmation statement. This is a company in terminal decline facing imminent dissolution.

2. Key Concerns

1. Cessation of Trade and Break-up Basis of Accounting: The accounts for the period ending 31 January 2025 explicitly state: "At the balance sheet date the company has ceased to trade. Therefore the accounts have been prepared on a break-up basis." This is the single most critical indicator — the business is no longer operational and assets are being valued on a forced-sale basis.

2. Proposal to Strike Off: The company status is listed as "Active - Proposal to Strike off," indicating that a voluntary strike-off process has been initiated at Companies House. This means the company is being wound up by its directors, and unless the process is halted, the company will be dissolved. This is consistent with the cessation of trade declaration.

3. Severe Balance Sheet Deterioration and Insolvency: Net assets have collapsed from £52,922 (2015) to negative £1,627 (January 2025). Cash at bank has dropped from £30,891 to £0. Total assets are a mere £537, consisting entirely of debtors, against current liabilities of £2,164. The company is balance-sheet insolvent and has no liquidity. Tangible fixed assets have been reduced to zero, suggesting disposal or write-off of all plant, equipment, and vehicles.

3. Positive Indicators

• Accounts Filed on Time: The latest accounts (period ending 31 January 2025) were filed before the October 2026 deadline, demonstrating some continued compliance discipline.
• Long Operating History: The company was incorporated in July 2009 and traded for approximately 15 years, suggesting it was a viable business for a sustained period.
• No Director Disqualifications: There are no records of disqualification orders against the sole director, Xxxxxx Xxxxxxxxname shown to subscribers.
• Debt Reduction: Total liabilities have been significantly reduced from £36,715 (July 2023) to £2,164 (January 2025), suggesting the director has been working to settle creditor balances during the wind-down process.

4. Due Diligence Notes

1. Overdue Confirmation Statement: The confirmation statement was due on 17 July 2026 and is marked as overdue. This should be investigated — it may be an administrative oversight or may reflect the director's disengagement given the strike-off process. Note that the strike-off may supersede this requirement.

2. Accounting Reference Date Change: The company changed its year-end from 31 July to 31 January, resulting in an 18-month accounting period (1 August 2023 to 31 January 2025). This change coincides with the cessation of trade and may have been made to align with the wind-down timeline. The P&L account has not been filed (permitted under s444(5A)), so profitability during this final period cannot be assessed.

3. Creditor Settlement Status: It is unclear whether the remaining £2,164 in current liabilities will be settled in full before dissolution. Under a strike-off, any remaining assets vest in the Crown (Bona Vacantia). Creditors should be contacted to confirm settlement arrangements.

4. Debtor Recoverability: The sole remaining asset is £537 in debtors. Given the break-up basis, it is questionable whether this amount is fully recoverable. The accounts do not provide detail on the nature or age of these receivables.

5. Related Party Transactions: The company is controlled by Xxxxxx Xxxxxxxxname shown to subscribers (50-75% ownership) and Xxxxxx Xxxxxxxxname shown to subscribers (25-50% ownership). Given the asset stripping (cash reduced to zero, tangible assets to zero), it should be investigated whether any assets were transferred to the directors or related parties below market value.

6. Strike Off Objections: Any interested party (particularly unpaid creditors) could object to the strike-off. The status should be monitored to confirm whether the strike-off proceeds or is suspended.

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