IDEAL ACCOMMODATION SERVICES LTD

Executive Summary

Ideal Accommodation Services Ltd currently maintains a positive net asset position but has experienced a marked decline in net assets and working capital over the latest financial year. While the company remains compliant with statutory filing obligations, limited operational data and low liquidity levels warrant caution. Further investigation into the causes of financial deterioration and the company’s business model is recommended to fully assess ongoing viability.

IDEAL ACCOMMODATION SERVICES LTD - Analysis Report

Company Number: 13439202

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net current assets and net assets from 2023 to 2024, indicating a weakening financial position that could impact solvency and liquidity. However, it remains solvent on a balance sheet basis with positive net assets and no overdue filings.

2. Key Concerns:

• Declining Net Assets: Net assets dropped sharply from £12,407 in 2023 to £1,461 in 2024, suggesting either asset disposals, write-downs, or losses. This rapid erosion could threaten ongoing solvency if the trend continues.
• Very Low Current Assets: At just £3,753 in 2024 with current liabilities of £2,292, the working capital buffer is minimal, raising liquidity concerns for meeting short-term obligations.
• No Employees and Limited Operational Information: The company reports zero employees and provides no indication of operational scale or revenue, raising questions about business sustainability and ongoing viability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory requirements and good governance practices.
• Sole Director with 75-100% Ownership: The single director and majority owner is clearly identified, simplifying control and accountability.
• Micro-Entity Status: The company benefits from simplified reporting and auditing exemptions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the cause of the significant decline in net assets between 2023 and 2024 to assess if this is due to operational losses, asset disposals, or accounting adjustments.
• Request detailed financials including profit and loss statements and cash flow data to better understand operational performance and liquidity trends.
• Clarify the nature and scale of business activities given SIC codes indicating real estate letting and domestic building construction, but no employees reported.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations that might impact solvency.
• Assess director's plans for business development or restructuring given the current low asset base and minimal working capital.