LEAK DETECTION 24/7 LTD

Executive Summary

LEAK DETECTION 24/7 LTD currently exhibits financial distress evidenced by negative net assets and a working capital deficit, raising significant solvency and liquidity concerns. While statutory filings are up to date and management appears stable, the company’s limited scale and lack of detailed financial performance data constrain the assessment of operational stability. Further due diligence is warranted to evaluate cash flows, creditor positions, and business viability before considering investment.

LEAK DETECTION 24/7 LTD - Analysis Report

Company Number: 13536775

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to negative net assets and a significant working capital deficit, indicating financial distress and potential solvency issues.

2. Key Concerns:

• Negative Net Assets: As of 31 July 2023, the company reports net assets of -£23,402, with a profit and loss reserve reflecting an accumulated loss of £23,403. This indicates that liabilities exceed assets, a critical solvency warning.

• Working Capital Deficit: Current liabilities stand at £36,557 with no current assets reported, resulting in a net current liabilities position of the same amount. This suggests potential liquidity constraints in meeting short-term obligations.

• Limited Operational Scale and Recent Incorporation: Incorporated in July 2021 and employing only one person, the company’s limited scale and short operating history restrict the ability to assess operational stability and growth prospects. The absence of income statement details further limits financial insight.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, with no overdue submissions noted, indicating adherence to statutory requirements.

• Ownership and Control Clarity: The sole director and 75-100% shareholder is identified with no public disqualifications or governance concerns, suggesting stable management oversight.

• Tangible Fixed Assets Presence: The company holds tangible fixed assets valued at £13,155, which, although modest, represent some invested capital.

4. Due Diligence Notes:

• Financial Performance and Cash Flows: Investigate the company’s income statement and cash flow statements (not filed publicly) to understand revenue generation, profitability, and cash management practices.

• Trade Creditors and Payables: Clarify the nature and aging of current liabilities amounting to £36,557 to assess payment terms and any overdue debts.

• Business Model Viability: Review contracts, client base, and market positioning given the niche SIC codes related to leak detection support activities and plumbing services, to gauge operational sustainability.

• Future Funding or Support: Confirm whether the company has access to additional capital or financial backing to cover current deficits and support ongoing operations.

• Director's Plans and Strategic Outlook: Engage with management to understand plans for returning to profitability, addressing negative equity, and managing liquidity risks.

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