Financial Health Assessment: ICS HOMES LIMITED

Financial Health Score: F

Explanation: The patient is terminal. The company is technically insolvent with negative net assets, has been proposed for strike-off from the Companies Register, and shows no signs of viable trading activity. This is a business in its final stages of existence.

Key Vital Signs

Diagnosis

The Clinical Picture

This patient has been in steady decline since incorporation, with a brief period of apparent stability around 2019-2021. The financial data reveals a classic pattern of an overleveraged construction business that has effectively ceased trading:

Early Symptoms (2016-2018): - The company was born with a weak constitution – negative net assets from inception (£-1,393 in 2016) - Grew rapidly through debt, reaching over £1M in total liabilities by 2019 - Never achieved a healthy equity position – liabilities consistently exceeded assets - Like a patient living on credit, the business was financially hypertensive with dangerous leverage levels

Critical Event (2021-2022): - Between June 2021 and June 2022, the balance sheet underwent a dramatic transformation - Total assets dropped from £994,305 to essentially zero - Total liabilities fell from £1,031,255 to just £18,723 - This indicates a major asset disposal or write-off event – likely the sale or transfer of property assets and settlement of associated debts - The remaining £18,723 creditor represents residual liabilities left on the books

Current Condition (2022-2025): - The balance sheet has been frozen in place for four consecutive years with identical figures - No trading activity is evident - The company exists only as a shell with unpaid creditors - Net assets remain negative at (£18,723)

Complications

1. Proposal to Strike Off: The most significant indicator – an application has been made to remove the company from the register. This is the corporate equivalent of a "do not resuscitate" order.

2. Overdue Confirmation Statement: The confirmation statement was due by 23 September 2025 and remains outstanding. This suggests the director has abandoned compliance obligations, consistent with a company being wound down.

3. Micro-Entity Filings: The company files only the bare minimum required – a balance sheet with no profit & loss detail, no cash flow statement, and no directors' report. This opacity makes full diagnosis challenging, but the available data is sufficient to confirm terminal condition.

The Anatomy of Decline

Year Net Assets Trend 2016 (£1,393) ■□□□□□□□□□ Weak start 2017 (£6,779) ■■□□□□□□□□ Deteriorating 2018 (£12,318) ■■■□□□□□□□ Worsening 2019 £17,612 □□□□□□□□■■ Brief recovery 2020 £33,333 □□□□□□□□■■ Peak health 2021 £36,950 □□□□□□□□■■ Best year 2022 (£18,723) ■■■■■■■■■■ Catastrophic decline 2023 (£18,723) ■■■■■■■■■■ Flatline 2024 (£18,723) ■■■■■■■■■■ Flatline 2025 (£18,723) ■■■■■■■■■■ Flatline

Prognosis

Poor to Non-Existent. The company is in the final stages of dissolution. The strike-off process, once completed, will remove the company from the register entirely. There is no realistic prospect of recovery or revival.

The remaining creditor (£18,723) may wish to object to the strike-off if they believe there are undisclosed assets or if they wish to pursue the debt through alternative means. Creditors have the right to challenge a strike-off application.

Recommendations

For the Director (Thomas Peter Berry):

1. Complete the Strike-Off Process: Ensure all outstanding filings are completed to avoid penalties and personal liability concerns. The overdue confirmation statement should be filed immediately.

2. Settle Remaining Creditors: If possible, settle the £18,723 creditor before dissolution to ensure a clean exit. Unresolved debts can create complications, particularly if any creditor objects to the strike-off.

3. Document the Asset Disposal: Given the dramatic reduction in assets between 2021-2022, ensure proper records exist for the disposal of approximately £1M in assets. This protects against any future claims of undervalue transactions or preference allegations.

4. Consider Formal Closure: If the strike-off is contested by creditors, consider a formal Members' Voluntary Liquidation (if solvent) or Creditors' Voluntary Liquidation (if insolvent) for a more structured wind-down.

For Creditors:

1. Monitor the Strike-Off: Creditors can object to the strike-off application through Companies House if they believe the company has unresolved obligations.

2. Assess Director Liability: If the company traded whilst insolvent, there may be grounds to pursue the director personally for wrongful trading under section 214 of the Insolvency Act 1986.

For Potential Business Partners:

1. Do Not Engage: This company should be treated as non-operational. Any business dealings should be conducted with extreme caution, if at all.

2. Verify Alternative Entities: If the director is operating through a different vehicle, conduct thorough due diligence on that entity instead.

Summary of Financial Pathology