LIQUID SOLUTIONS UK LIMITED

Financial Health Score: F

This company is in a state of severe financial distress. It is technically insolvent, meaning its liabilities vastly exceed its assets, and it has exhibited no signs of operational life for several years. Like a patient in a persistent vegetative state, the company's heart has stopped beating (no trading activity), but it remains on life support, likely sustained only by the forbearance of its creditors.

Key Vital Signs

• Pulse (Cash & Trading Activity): Undetectable. The company has filed as a dormant entity with no significant trading activity. Historically, cash reserves were minimal (£2,829 in 2020), and there has been no injection of new capital or revenue generation for at least five years. A business without cash flow is like a body without oxygen—survival is impossible without external support.
• Blood Pressure (Liquidity): Dangerously Low. Current assets sit at £41,679, but current liabilities (debts due within one year) are £128,585. This gives a current ratio of roughly 0.32. In medical terms, the company is suffering from acute financial anemia; it has less than a third of the resources needed to cover its immediate obligations.
• Cholesterol (Debt vs. Equity): Critically High. Net assets are deeply negative at -£110,634. The business owes far more than it owns, indicating a severe blockage of financial wellness. Shareholders' funds have been deeply in the red for a decade, showing a long-term chronic condition rather than a sudden illness.
• Weight Loss (Asset Depletion): Stabilized at an unhealthy level. From 2017 to 2021, total assets shrank from £115,610 to £46,451. However, since 2022, the balance sheet has completely flatlined at £42,951 in assets and £128,585 in liabilities. The patient has stopped losing weight, but only because it has stopped moving entirely.

Diagnosis

Chronic Insolvency Masked by Corporate Dormancy

The financial data reveals a business that is clinically dead but legally still breathing. Liquid Solutions UK Ltd is technically insolvent—it cannot pay its debts as they fall due, and its total liabilities exceed its total assets by over £110,000.

The primary "symptom" of this condition is the complete stagnation of the balance sheet. The exact same figures for assets and liabilities have been reported for five consecutive years (2022-2026). The latest filed accounts confirm the company is claiming dormancy and has "never traded" in this current iteration, despite having an active SIC code for the wholesale of hardware and plumbing supplies.

This scenario typically occurs when a business ceases trading but is kept "Active" on the register because the directors or related parties have not formally closed it. The £25,000 in creditors falling due after more than one year, combined with the £128,585 in short-term debt, are likely historical director loans or related-party balances that are simply sitting on the books, untreated and unpaid. The company is surviving only because its creditors (likely the director himself) are not demanding repayment.

Recommendations

To improve this company's financial wellness—or at least bring its legal status in line with its actual health—the following actions are recommended:

1. Euthanasia (Voluntary Strike Off): If the company has ceased trading permanently and has no future purpose, the most sensible treatment is to apply for voluntary strike-off to dissolve the company. This cleanses the register and stops the accumulation of administrative requirements. Before doing this, any remaining assets (like the £1,272 in fixed assets) must be distributed or written off.
2. Resuscitation (Capital Injection): If there is an intention to trade again, the patient needs an immediate blood transfusion. A formal capital injection is required to clear the £110,634 negative equity and restore the balance sheet to a healthy state. Without this, the directors risk accusations of wrongful trading if they incur new debts while insolvent.
3. Settle Outstanding Liabilities: The £128,585 in current liabilities needs to be addressed. If these are director loans, they should be formally written off or converted to equity to clean up the balance sheet and stop the bleeding.
4. Update the Corporate Record: The company is filing as dormant while holding an active SIC code for wholesale trade. This discrepancy should be corrected with Companies House to ensure the public record accurately reflects the company's condition.