GADGETS4MARKETING LIMITED

Risk Rating: HIGH Justification: The company is balance sheet insolvent, with net liabilities of £15,508 as of 30 September 2024. It possesses virtually no liquid assets to cover £11,602 in current liabilities, representing a severe solvency and liquidity risk. The company’s continued operation relies entirely on the forbearance of its creditors and likely the financial support of its sole director.

Key Concerns: * Balance Sheet Insolvency: The company’s total net liabilities stand at £15,508, worsening from £12,342 in the prior year. Total assets amount to a mere £350 (comprising £250 in fixed assets and £100 in uncalled share capital), against total liabilities of £15,858. This indicates the company is fundamentally insolvent on a net asset basis. * Severe Liquidity Crisis: As of the 2024 year-end, the company reported £0 in current assets (down from £650 in 2023) against £11,602 in creditors falling due within one year. The resulting net current liability of £11,602 demonstrates a complete inability to meet short-term obligations from existing resources. * Operational Viability: The company reports zero employees for both 2024 and 2023, yet operates as an "exhibition and fair organiser"—a sector that typically requires significant working capital and human resources. This raises questions about whether the company is actively trading or merely existing as a shell to manage legacy liabilities.

Positive Indicators: * Regulatory Compliance: The company is actively filing its accounts and confirmation statements on time. The most recent accounts were approved and signed in July 2025, indicating the director is maintaining statutory responsibilities. * Longevity: Incorporated in 2012, the company has survived for over a decade. Historical data shows it has recovered from negative net assets before (e.g., net liabilities of £3,380 in 2015), suggesting resilience or ongoing creditor tolerance. * Stable Long-term Liabilities: Long-term creditors have decreased from £8,852 in 2023 to £3,656 in 2024, suggesting some debt is being amortized or restructured, though current liabilities have grown significantly.

Due Diligence Notes: * Going Concern Basis: The accounts were prepared on a going concern basis despite severe insolvency. It is critical to investigate whether there is a formal director's loan facility or a letter of support from the director (Mr. Zahid Aziz) to justify this accounting assumption. * Nature of Liabilities: Further investigation is required to understand the composition of the £11,602 in current liabilities. It is vital to determine how much is owed to related parties (e.g., the director) versus third-party trade creditors or HMRC, as this dictates the urgency and severity of the solvency risk. * Data Discrepancy: Note a discrepancy between the structured financial history data (which suggests positive net assets of £15,508) and the actual filed balance sheet text (which clearly shows net liabilities of £15,508 denoted by parentheses). The filed accounts text takes precedence and confirms the insolvent position. * Current Trading Status: Given the zero employees and zero current assets, inquiries should be made into whether the company is dormant or holding assets off-balance-sheet, and how it is currently generating revenue, if at all.