LIGHT BLUE DOLPHIN RESEARCH & TECHNOLOGY LONDON LTD

Executive Summary

LIGHT BLUE DOLPHIN RESEARCH & TECHNOLOGY LONDON LTD displays significant solvency and liquidity concerns with net liabilities worsening year on year despite a large share capital. While compliant with filing requirements and maintaining active status, the company’s negative working capital and deteriorating financial position present a high risk to investors. Further detailed financial and operational due diligence is essential to understand the underlying causes and assess future viability.

LIGHT BLUE DOLPHIN RESEARCH & TECHNOLOGY LONDON LTD - Analysis Report

Company Number: 13011989

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: HIGH
   The company exhibits clear solvency and liquidity risks, as evidenced by its negative net current assets and net liabilities position which have worsened over recent years. The micro-entity accounts show liabilities substantially exceeding current assets, indicating an inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£133,994 in 2024) far exceed its current assets (£80), resulting in a net current liability of approximately £134k. This is a significant red flag regarding liquidity and the ability to cover debts as they fall due.
• Worsening Financial Position: The net liabilities have increased from approximately £96k in 2023 to £134k in 2024, showing a deteriorating balance sheet rather than improvement or stabilization.
• Share Capital vs. Financial Position: Despite a large nominal share capital (£20 million), the reported net liabilities and shareholder funds are deeply negative, suggesting the capital has not been effectively deployed or is impaired. This discrepancy warrants further investigation.

3. Positive Indicators:

• No Overdue Filings: The company is current on both accounts and confirmation statements, indicating compliance with statutory filing requirements and no immediate regulatory compliance breaches.
• Active Status: The company remains active and not in liquidation or administration, suggesting it is continuing operations despite financial challenges.
• Experienced Directors: The presence of directors with prior involvement since incorporation and a clear PSC structure may indicate stable governance at the ownership level.

4. Due Diligence Notes:

• Detailed Financial Review: Obtain full financial statements beyond micro-entity filings to understand the nature of liabilities, cash flow, and why substantial share capital is not reflected in net assets.
• Cash Flow Analysis: Investigate operational cash flows and sources of funding to assess whether the company can meet ongoing obligations or is reliant on further capital injections.
• Director and Ownership Changes: Review reasons behind recent director resignations and appointments in March 2025 and any impact on company strategy or financial management.
• Debt Structure and Creditors: Clarify creditor composition and terms, especially given the increase in current liabilities in 2024 and the small number of employees (1 average), which may indicate a non-operational or asset-heavy entity.
• Business Model and Revenue: Examine underlying business activities and revenue streams since SIC classifications are diverse and do not clarify core operations; this impacts operational sustainability assessment.