FORDSOLVE LTD

Executive Summary

Fordsolve Ltd exhibits high financial risk chiefly due to its negative net asset position, low liquidity, and outstanding long-term liabilities. While the company complies with filing requirements and maintains minimal operational complexity, the financials suggest challenges in meeting obligations without additional capital or improved cash flows. Further due diligence on debt terms and business viability is recommended before considering investment.

FORDSOLVE LTD - Analysis Report

Company Number: 13153932

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: HIGH
   The company shows signs of financial distress with a net liability position and current liabilities exceeding current assets in prior years. The presence of long-term creditors and minimal cash assets raises significant solvency and liquidity concerns.

2. Key Concerns:

• Negative net assets and shareholders’ funds in recent years indicate accumulated losses and erosion of equity.
• Current liabilities substantially exceed current assets, resulting in negative net working capital in prior years and a very low cash balance (£169).
• Presence of creditors falling due after more than one year (£1,130) as of the latest accounts suggests long-term debt obligations alongside poor liquidity.

3. Positive Indicators:

• The company is current with statutory filings, including accounts and confirmation statements, demonstrating compliance.
• The sole director and 100% shareholder appears engaged, with no disqualifications or governance issues noted.
• Operating as a micro-entity with only one employee reduces operational complexity and overheads.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1,130 long-term creditors to assess repayment risks and potential refinancing.
• Review detailed cash flow statements if available to understand operational cash generation or reliance on external funding.
• Clarify the business model and revenue streams given the SIC codes (software development and internet retail) and assess sustainability prospects.
• Confirm if there are any related party transactions or director loans impacting the balance sheet.
• Evaluate the impact of accumulated losses on future financing and stakeholder confidence.