LEATHER AND STEEL LTD

Executive Summary

Leather and Steel Ltd presents a high-risk profile due to significant negative net assets and a substantial liquidity deficit. While regulatory filings are up to date, the lack of operational activity and poor financial position raise serious concerns about the company's ability to meet obligations and sustain business operations. Further investigation into liabilities, business plans, and strategic intentions is recommended to fully assess recovery prospects.

LEATHER AND STEEL LTD - Analysis Report

Company Number: 14431513

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net asset position and net current liabilities, indicating a poor solvency position and inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Assets: The reported net assets and shareholders' funds stand at approximately -£29,307, signaling accumulated losses or undercapitalization.
• Liquidity Shortfall: Current liabilities of £29,802 vastly exceed current assets of £494, resulting in a working capital deficit of over £29,000, which is a clear liquidity red flag.
• Lack of Operational Activity: The company reports zero employees and minimal current assets, suggesting very limited or no ongoing operational activity, raising sustainability concerns.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is current on both accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• Single Director and PSC Alignment: Mr. Faisal Nadeem serves as sole director and 100% shareholder, which may simplify governance and decision-making processes.
• Exemption from Audit: As a micro-entity, the company benefits from reduced compliance burden, which may be appropriate given its size and financial position.

4. Due Diligence Notes:

• Investigate the nature and terms of the £29,802 current liabilities to understand creditor exposure and payment obligations.
• Review the business plan or trading activity to assess if the company intends to generate revenues or resolve the negative equity position.
• Clarify the reason for the name change from "Longfield Hill Security Services Ltd" to "Leather and Steel Ltd" and whether this reflects a strategic pivot or restructuring.
• Confirm ongoing operational activity, given zero employees and minimal assets reported.
• Assess director's plans for recapitalization or settling liabilities to mitigate insolvency risks.