FORMAN PROPERTY SOLUTIONS LTD

Executive Summary

Forman Property Solutions Ltd presents a high risk profile mainly due to its prior financial position with substantial current liabilities and minimal equity, coupled with dormancy status indicating no active trading. While regulatory filings are current and governance appears stable, the company’s financial history and low asset base warrant detailed scrutiny before considering investment. Further investigation into liabilities and operational intentions is essential to assess future sustainability.

FORMAN PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 12742056

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   The company is currently classified as dormant with minimal financial activity, yet historical data shows significant current liabilities far exceeding cash or current assets. This financial mismatch presents a high risk regarding solvency and liquidity.

2. Key Concerns:

• Solvency and Liquidity Issues: The 2020 and 2021 financial years show current liabilities around £10,251 with very minimal assets or cash, resulting in negative net current assets and net liabilities. Although later years are dormant, this prior financial stress is a red flag.
• Dormant Status Despite Previous Activity: The transition to dormant status raises questions about operational viability and whether the company ceased business activities to avoid scrutiny or financial obligations.
• Minimal Share Capital and Equity: The share capital remains at £1 and net assets are reported at £1 in the latest accounts. This extremely low equity base provides a weak buffer against any liabilities or operational risks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Single Shareholder with Clear Control: The sole director and 75-100% shareholder, Mr. Robert Speirs, has full control which may facilitate swift decision-making if the company resumes activity or restructuring.
• No Current Liquidation or Insolvency Proceedings: The company remains active and is not under administration or liquidation, which suggests no immediate formal insolvency actions.

4. Due Diligence Notes:

• Investigate the nature and origin of the significant current liabilities recorded in 2020 and 2021, and whether they remain outstanding or have been settled or written off.
• Clarify the reason for dormancy status since 2022 despite prior activity and liabilities; assess whether this is a strategic pause or indicative of operational failure.
• Review any off-balance-sheet liabilities or contingent risks not captured in dormant accounts, especially given the low net asset base.
• Understand the business plan or future intentions of the controlling director regarding the company’s viability and potential reactivation.