FLUID HEATING SERVICES LTD

Executive Summary

Fluid Heating Services Ltd exhibits a high risk profile due to negative net current assets and shareholders’ funds in its latest accounts, signaling potential solvency and liquidity challenges. While the company complies with filing requirements and benefits from a stable ownership structure, its very recent incorporation, small scale, and deteriorating financial position warrant careful scrutiny. Further due diligence on cash flow, liabilities, and operational prospects is recommended before investment consideration.

FLUID HEATING SERVICES LTD - Analysis Report

Company Number: SC720851

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets (£-1,875) and negative shareholders' funds (£-1,875) in the most recent financial year, indicating insolvency on a balance sheet basis. The small scale and limited financial history reduce confidence in operational stability.

2. Key Concerns:

• Solvency Risk: The company’s net current liabilities and negative equity position at 31 January 2024 suggest it may not be able to meet short-term obligations without additional funding.
• Liquidity Concerns: Current liabilities exceed current assets, pointing to potential cash flow difficulties. No cash or cash equivalents breakdown is available to assess immediate liquidity.
• Operational Stability: The company is very new (incorporated 2022) and has only one employee, which may indicate limited capacity to scale or absorb operational shocks.

3. Positive Indicators:

• Compliance: Filings (accounts and confirmation statement) are up to date and not overdue, showing good regulatory compliance to date.
• Ownership Structure: Clear and stable ownership with a majority shareholder controlling 75-100% of shares, which may support decision-making and capital injections if needed.
• Industry Activity: Engaged in fundamental trades (plumbing, heating, electrical installation) which typically have steady demand.

4. Due Diligence Notes:

• Review recent cash flow statements or management accounts (if available) to better understand liquidity and cash management.
• Investigate the cause of the deterioration from a marginally positive net asset position in 2023 to negative in 2024—was it due to increased liabilities, losses, or asset write-downs?
• Assess any contingent liabilities or off-balance sheet obligations that may exacerbate financial stress.
• Confirm if the company has access to external funding or shareholder support given the negative equity.
• Examine customer contracts and pipeline to evaluate future revenue visibility and operational sustainability.