IMPERIUM DEVELOPMENTS LTD

Executive Summary

Imperium Developments Ltd is an early-stage micro-entity exhibiting a negative net asset position and working capital deficit, raising significant solvency and liquidity concerns. While statutory filings are current and the company is operational with a small workforce, the financial indicators suggest heightened risk requiring further investigation into liabilities and cash flow prospects. Management changes and concentrated ownership also warrant close scrutiny to assess operational stability.

IMPERIUM DEVELOPMENTS LTD - Analysis Report

Company Number: 14673303

Analysis Date: 2025-07-29 19:39 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-530) and negative net current assets (liabilities of £809) despite being a micro-entity with minimal fixed assets (£279). Current liabilities (£84,637) exceed current assets (£41,827), indicating liquidity strain. The company is very recently incorporated (Feb 2023) and has limited operating history, increasing uncertainty.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet reports net liabilities, suggesting the company’s obligations exceed assets, raising solvency concerns.
• High Current Liabilities Relative to Assets: Current liabilities more than double current assets, implying potential cash flow difficulties in meeting short-term obligations.
• Recent Director Turnover and Control Changes: One director resigned within the first year, and significant shareholding/control is concentrated, which may affect governance and operational stability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Some Level of Operating Activity: The company has four employees on average, suggesting active operations despite early stage.
• Industry Focus: The company operates in demolition and construction sectors, which can be cash-generative if contracts are secured.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities—are these trade payables, loans, or other debts?
• Clarify the cause of negative net assets and whether this is due to startup expenses or other factors.
• Review cash flow projections and contract pipeline to assess ability to improve liquidity.
• Examine reasons for director resignation and impact on management continuity.
• Confirm the background and financial capacity of the controlling shareholder to support the company if necessary.