HE DISTRIBUTIONS LIMITED

Executive Summary

HE Distributions Limited is a dormant company with minimal net assets and no trading activity, presenting a high risk for solvency and liquidity. While regulatory compliance is up to date and governance appears solid, the absence of operational activity and financial buffer raises significant concerns for investors. Further investigation is warranted to clarify the company’s purpose and future viability.

HE DISTRIBUTIONS LIMITED - Analysis Report

Company Number: 12729828

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH
   Despite the company’s dormant status, the extremely minimal net assets (£2) and absence of trading activity present a heightened risk profile. The company has negligible equity and current assets that are perfectly matched by current liabilities, indicating no financial buffer to absorb shocks or liabilities.

2. Key Concerns:

• Dormant Status with No Trading Activity: The company has not traded and has no profit or loss recorded, raising questions about operational viability and future sustainability.
• Minimal Net Assets and Equity: Net assets and shareholders’ funds remain at £2 consistently, indicating no capital investment or retained earnings to support operations or obligations.
• Balance Sheet Neutrality: Current assets and liabilities are nearly identical, reflecting no liquidity cushion to manage short-term obligations or unexpected expenses.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current on its accounts and confirmation statement filings with no overdue submissions, which suggests adherence to regulatory requirements.
• Established Directors with Relevant Experience: Directors include a Finance Director and experienced company directors which may provide competent governance should the company commence operations.
• Company Status Active: The company remains active and not in liquidation or administration, indicating no immediate insolvency proceedings.

4. Due Diligence Notes:

• Investigate the Company’s Business Model and Future Plans: Given the dormant status and lack of trading, it is critical to understand the intention behind maintaining the company and any planned business activities.
• Review Director Backgrounds and PSC Controls: Confirm no adverse conduct or disqualifications exist for directors, especially as they hold significant control and governance responsibilities.
• Examine Intercompany or Related Party Transactions: The near-equivalent current assets and liabilities may indicate internal balances or loans; clarity on these items is necessary for assessing financial health.