FORRESTER LOWE LTD

Executive Summary

FORRESTER LOWE LTD is a micro private limited company displaying signs of financial strain, including a significant drop in turnover and net assets. While regulatory compliance is current, the very low operational scale and diminishing working capital pose risks to solvency and business continuity. Further financial and operational due diligence is advised before considering investment.

FORRESTER LOWE LTD - Analysis Report

Company Number: 12771041

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant deterioration in financial performance and net asset value over recent years. Turnover has fallen sharply in the latest year, and net assets have decreased from £2,278 in 2023 to £266 in 2024, indicating potential solvency stress. The scale of operations is minimal with very low turnover and current assets, raising concerns about liquidity and operational sustainability.

2. Key Concerns:

• Declining Revenue and Profitability: Turnover plunged from £16,000 in 2023 to £2,252 in 2024, with corresponding reduction in profit. This trend questions business viability.
• Eroding Net Assets and Shareholders’ Funds: Net assets decreased by about 88% year-over-year, signaling possible capital erosion and increased solvency risk.
• Minimal Operational Scale and Cash Reserves: Current assets dropped from £4,522 to £300, with no current liabilities, implying very limited cash or receivables to fund operations or absorb shocks.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement submissions, indicating regulatory compliance and governance diligence.
• No Current Liabilities: Absence of short-term creditors suggests limited immediate financial obligations.
• Micro-entity Filing Status: Filing as a micro entity reflects a straightforward accounting regime which reduces administrative burden.

4. Due Diligence Notes:

• Investigate reasons behind sharp revenue decline and whether it is temporary or structural.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet figures.
• Assess director’s future plans for financial stabilization or business turnaround.
• Verify absence of off-balance sheet liabilities or contingent risks not disclosed.
• Confirm no undisclosed related party transactions or director loans.
• Consider the impact of the minimal share capital (£50) on financial flexibility.