Risk Assessment: JKQ THORNTON LIMITED (08494033)

1. Risk Rating: HIGH

The company carries HIGH risk primarily due to its active strike-off proposal status, which indicates the company may be dissolved in the near future. Combined with an overdue confirmation statement, micro-entity scale operations, and a history of significant financial volatility, this entity presents fundamental concerns regarding its continuity and suitability for institutional investment.

2. Key Concerns

Concern 1: Active Proposal to Strike Off

This is the most critical red flag. The company status "Active - Proposal to Strike off" means an application has been made to remove the company from the Companies House register. This could be: - A voluntary strike-off initiated by the director (suggesting the business is winding down) - A compulsory strike-off initiated by Companies House, typically for non-compliance

In either scenario, if the strike-off proceeds, the company will cease to exist. Any financial commitments or contractual obligations could become unenforceable, and assets may vest in the Crown (bona vacantia).

Concern 2: Overdue Confirmation Statement

The confirmation statement was due by 23 July 2024 and remains overdue. This is a compliance failure that: - May have triggered the compulsory strike-off process - Suggests the director may be disengaged from statutory duties - Can result in fines, prosecution of officers, and ultimately dissolution

Concern 3: Negligible Financial Scale and Volatility

The company's financial position is extremely small and has shown significant historical volatility:

The jump to £29,049 total assets in 2021 (with £25,629 in cash) followed by a return to minimal levels suggests a one-time transaction—possibly a short-term loan or capital injection that was subsequently withdrawn. The 2025 accounts show only £873 in current assets and £2,250 in fixed assets, with zero cash reported. This scale is operationally insignificant for institutional investment purposes.

3. Positive Indicators

• Net Positive Asset Position: As of March 2025, the company reports net assets of £3,123 with no liabilities. While minimal, there is no immediate solvency concern.
• Accounts Filed to Date: Despite the strike-off status, the company has filed accounts up to 31 March 2025, indicating some ongoing compliance.
• No Director Disqualification: There are no records of disqualification orders against the sole director, Khumbulani Thornton.
• Longevity: The company has been incorporated since April 2013, demonstrating over a decade of existence—though this must be weighed against the volatile financial history.
• Recent Improvement: Net assets increased from £1,457 (2024) to £3,123 (2025), primarily through the introduction of £2,250 in fixed assets.

4. Due Diligence Notes

1. Strike-Off Origin: Urgently establish whether the strike-off is voluntary (director-initiated via Form DS01) or compulsory (Companies House-initiated). This distinction is critical—if compulsory, there may be opportunities to object; if voluntary, it signals the director's intention to close.

2. Confirmation Statement Compliance: Determine why the confirmation statement remains overdue and whether the director intends to rectify this. Failure to file can result in criminal penalties and will accelerate dissolution.

3. Nature of Fixed Assets: The 2025 accounts show £2,250 in fixed assets (up from £nil in 2024). As micro-entity accounts provide no breakdown, investigate what these assets comprise and whether they have any realisable value.

4. Cash Position: The 2025 accounts do not report a cash figure. With only £873 in current assets and no current liabilities, cash appears extremely limited. Verify whether the company has any operating cash flow or banking facilities.

5. Trading Status: Confirm whether the company is actively trading in "Other human health activities" (SIC 86900) or is effectively dormant. The single employee and minimal financial activity suggest very limited or no trading operations.

6. Related Party Transactions: Micro-entity accounts provide no disclosure on related-party transactions. Given the historical volatility and the sole director/shareholder structure (Mrs Thornton owns >75% of shares), investigate whether intercompany or personal transactions explain the financial swings.

7. Accounts Approval Date: The 2025 accounts were approved on 16 April 2026, which appears to be a future date. Verify this is not a filing error and confirm the accounts are legitimately filed.

8. Creditor Position: While the 2025 accounts show no liabilities, the 2022-2023 period showed creditor figures. Investigate whether any outstanding obligations to third parties or HMRC remain unreported or have been settled.