FIRST STAR FACILITIES LTD

Executive Summary

FIRST STAR FACILITIES LTD is currently experiencing significant financial challenges, with negative net assets and working capital indicating solvency and liquidity risks. While regulatory filings are current, the recent deterioration in financial position and changes in directorate warrant close scrutiny to assess operational viability and governance stability.

FIRST STAR FACILITIES LTD - Analysis Report

Company Number: 13944052

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress as evidenced by net current liabilities and negative net assets in the most recent financial year.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 28 February 2024, the company reported net current liabilities of £2,895 and net assets of -£2,895, indicating a worsening financial position compared to the prior year.
• Declining Cash and Debtors: Cash on hand is negligible (£23) with no reported debtors in 2024, compared to £3,730 in debtors the prior year, suggesting a potential issue in revenue generation or collection.
• Director and Ownership Changes: The main shareholder (holding 75-100%) resigned as director in September 2024, leaving a new director with 50-75% shareholding. This change in control and management could impact governance and strategic direction.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Operating in Diverse Service Niches: The company’s SIC codes cover cleaning, private security, and event catering activities, which may provide multiple revenue streams if managed effectively.
• Small Company Reporting Regime: The company benefits from exemption from audit, indicating it is within small company thresholds, which may reduce administrative cost burdens.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in assets and working capital during the 2024 financial year and whether this is a temporary cash flow issue or indicative of deeper operational problems.
• Review the business model and contracts to assess revenue sustainability, particularly given the absence of debtors in the latest year and the significant drop in cash resources.
• Clarify the impact of director resignation and shareholding changes on company control, governance, and strategic plans. Also, verify any informal financial support or director loans that may not be reflected in the accounts.