Company Number: 14436833

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: HIGH

Justification: Ethical Solutions Ltd is a very recently incorporated micro-entity with minimal assets (£58 net assets as of the latest financial year) and zero turnover for two consecutive years. The company has no employees, no fixed assets, and negligible current assets, indicating no active trading or operational cash flow. This raises significant concerns regarding its ability to meet obligations and sustain operations.

2. Key Concerns:

• Lack of Revenue: Zero turnover recorded for both reported financial years signals no business activity or sales generation.
• Minimal Financial Resources: Net assets have sharply declined from £728 to £58 within one year, reflecting limited financial buffer or capital injection.
• Operational Inactivity: No employees and no material assets suggest the company may not be currently conducting meaningful business activities, raising questions about ongoing viability.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified and consistent, reducing governance ambiguity.
• No Liabilities: The company reports no current or long-term liabilities, limiting solvency pressures from creditors at this stage.

4. Due Diligence Notes:

• Investigate the nature and plans for commercial activity given the zero turnover and minimal assets.
• Confirm the source and intended use of funds represented by current assets (£58) and prior year’s £728.
• Review any related party transactions or off-balance sheet commitments not disclosed.
• Assess director’s intent and strategy for the company given the current dormant operational profile.
• Confirm whether the company is maintaining accounting records adequately and is prepared to escalate filings if business commences.