FINCH FILTRATION INNOVATION SYSTEMS LTD

Executive Summary

Finch Filtration Innovation Systems Ltd demonstrates increasing financial stress with negative net assets and working capital deficits as of March 2024. While regulatory filings are current and no insolvency procedures are underway, the company’s limited capital base and liquidity concerns elevate its risk profile. Further investigation into the underlying causes of financial deterioration and operational viability is recommended before investment consideration.

FINCH FILTRATION INNOVATION SYSTEMS LTD - Analysis Report

Company Number: 12526888

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   The company shows persistent net current liabilities and has moved from positive net assets in prior years to a net liabilities position as of the latest accounts. This signals solvency concerns and potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets declined from £100 in 2023 to a negative £4,998 in 2024, indicating erosion of equity and possible accumulated losses.
• Net Current Liabilities: Current liabilities exceed current assets by £5,168 in 2024, suggesting liquidity stress and potential cash flow difficulties in the near term.
• Small Scale and Limited Capital: With only £100 share capital and two directors, the company has limited financial buffer and operational scale, increasing vulnerability to adverse trading conditions.

3. Positive Indicators:

• Filing Compliance: The company is up to date with accounts and confirmation statement filings, indicating good regulatory compliance and governance practices.
• Stable Workforce: Maintains a consistent headcount of two employees (including directors), which may reflect controlled overheads.
• No Indication of Insolvency Process: The company status is active with no liquidation or administration proceedings reported.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and the nature of liabilities contributing to the negative working capital.
• Review cash flow statements (if available) to assess operational cash generation and short-term liquidity management.
• Examine trading performance and future contracts to evaluate sustainability of business operations given its small scale and financial strain.
• Confirm the absence of any director disqualifications or regulatory warnings beyond what is publicly visible.
• Understand the company’s business model and market position within specialised cleaning services (SIC 81222) to contextualise financial performance.