ISLAND SOLUTIONS LIMITED

Executive Summary

Island Solutions Limited is a dormant private limited company exhibiting stable but inactive financial health, with nominal assets and cash reflecting no trading activity. The company is compliant with statutory filing requirements and shows no signs of distress. Continued compliance and clarity on future business plans are recommended to maintain or improve its financial wellness.

ISLAND SOLUTIONS LIMITED - Analysis Report

Company Number: SC716035

Analysis Date: 2025-07-19 12:07 UTC

Financial Health Assessment: ISLAND SOLUTIONS LIMITED

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1. Financial Health Score: Grade C (Dormant but Compliant)

Explanation:
Island Solutions Limited is classified as a dormant company with minimal financial activity and filings compliant with statutory requirements. While the financial "vital signs" show no active trading or operational cash flows, the company maintains a clean compliance record and no signs of financial distress. Its financial condition is stable but inactive, analogous to a patient in a state of rest or hibernation rather than active vitality.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank & In Hand	2	Nominal cash balance, indicates no operational cash flow. Essentially no working capital.
Net Assets	2	Total assets equal nominal share capital; company has no accumulated profits or liabilities.
Shareholders’ Funds	2	Reflects only the issued share capital; no retained earnings or reserves.
Account Category	Dormant	Indicates no significant financial transactions during the year.
Filing Status	Up to Date	Accounts and confirmation statements filed on time with no overdue filings.
Directors & Control	Stable	Two directors with equal control and no disqualifications or governance issues reported.

Interpretation:

• The company is essentially in a "financial coma," with no trading activity or operational income/expenses.
• The minimal cash and net assets reflect the company’s dormant status rather than poor financial health.
• Compliance with filing deadlines shows responsible governance, avoiding penalties or regulatory risks.

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3. Diagnosis

Island Solutions Limited is in a stable but inactive financial condition consistent with a dormant company. The "symptoms" reveal no operational cash flow, no liabilities, and no profit or loss activity—characteristic of a company that has been set up but has not commenced trading or has ceased all trading activities. The company's balance sheet is minimal, representing only the nominal share capital.

The governance structure is sound, with two directors sharing control and no adverse records or warnings. The company is current with all statutory filings, indicating no administrative neglect.

There are no red flags such as overdrafts, negative net assets, or overdue filings that would indicate financial distress or risk of insolvency. However, the absence of trading means the company currently does not generate value or returns.

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4. Recommendations

• Assess Business Intent: Confirm whether the company intends to commence trading or remain dormant. Dormant status is sustainable if the company is a holding vehicle or awaiting future projects.
• Plan for Activation: If planning to trade, prepare for financial health monitoring once transactions begin. This includes establishing cash flow forecasts, budgeting, and maintaining working capital.
• Maintain Compliance: Continue timely submission of accounts and confirmation statements to avoid penalties—this is the company’s lifeline in maintaining good standing.
• Consider Dormant Company Risks: Although dormant companies have low immediate risks, they should monitor changes in regulations or market conditions that might affect their status or costs.
• Evaluate Directors’ Roles: Directors should document their oversight and ensure readiness to manage financial health actively if the company activates.

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