EXTRACT FILTRATION SOLUTIONS LIMITED

Executive Summary

Extract Filtration Solutions Limited maintains a positive net asset position with no overdue statutory filings, reflecting compliance and solvency at face value. However, significant asset disposals and limited financial disclosure warrant closer examination to fully assess liquidity and operational sustainability. Further financial detail and clarifications are recommended before concluding on investment risk.

EXTRACT FILTRATION SOLUTIONS LIMITED - Analysis Report

Company Number: 12522895

Analysis Date: 2025-07-29 12:08 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a positive net asset position and no current liabilities as of the latest accounts, which is favorable. However, the significant reduction in fixed assets and fluctuations in working capital over recent years suggest potential operational or investment instability. The micro-entity status limits the detail available for a comprehensive financial assessment.

2. Key Concerns:

• Asset Reduction: Fixed assets dropped from £19,250 in 2023 to zero in 2024, which may indicate asset disposals or write-offs affecting operational capacity or future earning potential.
• Volatile Working Capital: Current assets increased modestly, but the absence of current liabilities in 2024 compared to £10,000 in 2023 may reflect changes in creditor management or payment terms that require further investigation.
• Limited Financial Disclosure: As a micro-entity, the company files minimal information, restricting insight into profitability, cash flows, or contingent liabilities, increasing due diligence complexity.

3. Positive Indicators:

• Net Assets Positive and Stable: Despite fluctuations, net assets remain positive (£3,316 in 2024), indicating the company is solvent at the balance sheet date.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, showing good regulatory compliance.
• Experienced Director and Majority Control: The sole director, Mr. Richard John Dibb, also holds majority control, which may support stable governance and clear decision-making.

4. Due Diligence Notes:

• Clarify the reasons behind the disposal or loss of fixed assets between 2023 and 2024 and assess the impact on operational capability.
• Request management accounts or cash flow statements to evaluate liquidity beyond balance sheet snapshots.
• Investigate trade creditor and debtor details to understand the cash conversion cycle and payment practices.
• Confirm if the low share capital (£100) adequately supports the business given its operational scale.
• Review any related party transactions or director loans, as these are common in small private companies but not disclosed in micro-entity filings.