Investment Risk Analysis: KEYERSBRIDGE LIMITED

1. Risk Rating: HIGH

Justification: The company has moved from a marginal positive net asset position (£13,098 in 2023) to a significant negative position (-£67,437 in 2024), representing technical insolvency. Net current liabilities of £106,983 and cash declining to £5,010 against current liabilities of £191,809 present severe liquidity concerns. The simultaneous resignation of two directors in June 2026 compounds governance risk.

2. Key Concerns

Concern 1: Technical Insolvency and Severe Balance Sheet Deterioration

Net assets swung from +£13,098 (2023) to -£67,437 (2024) — a deterioration of over £80,000 in a single year. This follows a historical pattern of volatile net asset positions, with deeply negative equity in 2015/2016 (-£82,233 and -£74,653 respectively). The accumulated losses stand at -£67,537 against minimal share capital of £100, leaving no equity buffer. The company's ability to continue as a going concern must be in question without significant shareholder or creditor support.

Concern 2: Critical Liquidity Position

Current assets (£84,826) fall drastically short of current liabilities (£191,809), yielding a current ratio of approximately 0.44. Cash has declined 56% from £11,317 to £5,010. Most critically, trade creditors have surged from £29,752 to £95,724 — a 222% increase — strongly suggesting the company is stretching supplier payments to manage cash flow. This pattern often precedes creditor pressure for formal recovery actions.

Concern 3: Director Departures and Governance Risk

Two directors resigned within days of each other in June 2026 (Raja Hissam HYDER on 15 June and Gaston LAULHE on 14 June), leaving Susan Jane RAMALLO as the sole director. While the timing may be coincidental, simultaneous director departures from a company in financial distress is a significant red flag. The remaining director now bears full legal and fiduciary responsibility, concentrating governance risk.

3. Positive Indicators

• Filing Compliance: Accounts and confirmation statements are current with no overdue filings, indicating administrative discipline and regulatory compliance is maintained.

• Operational Continuity: The company has traded for over 13 years since incorporation in 2011, with consistent employee numbers (7 staff in both 2023 and 2024), suggesting an ongoing operational business rather than a shell.

• Continued Capital Investment: Plant and machinery additions of £40,369 in FY2024 (with £8,850 in disposals) indicate the business is still investing in operational assets, which would be unusual if management anticipated imminent closure.

• Shareholder Support History: The recovery from deeply negative equity positions in 2015/2016 to positive territory by 2017-2023 suggests historical willingness of shareholders/creditors to support the business through difficult periods.

4. Due Diligence Notes