Risk Analysis: LIVING SOLUTIONS GLOBAL LIMITED

1. Risk Rating: HIGH

Justification: The company is under a proposal to be struck off the register, which represents an imminent existential threat to the entity. Combined with a history of severe financial deterioration (shareholders' funds swung from +£676,504 to -£682,944 between 2017-2018), four consecutive years of identical balance sheet figures suggesting dormancy, an overdue confirmation statement, and nil employees, this entity presents substantial solvency and operational concerns that would give any institutional investor significant pause.

2. Key Concerns

Concern 1 – Strike-Off Proceedings The company status is "Active – Proposal to Strike off." This means a process has been initiated to remove the company from the Companies House register. This can be initiated by the company itself (voluntary) or by a third party, often a creditor. Regardless of initiator, this signals that the entity's continuation is in serious jeopardy. Any investment or contractual exposure to this company would be at immediate risk of being stranded.

Concern 2 – Massive and Unexplained Financial Deterioration Between 2017 and 2018, shareholders' funds swung from +£676,504 to -£681,444—a deterioration of approximately £1.36 million in a single year. The limited data available does not explain this catastrophic shift. While shareholders' funds have since recovered to a modest positive position of £6,395, the magnitude and opacity of this historical event is deeply concerning. It suggests either significant write-offs, bad debts, or prior misstatement.

Concern 3 – Static Financial Position Indicates Dormancy or Inactivity The balance sheet figures for 2022 through 2025 are identical (Total Assets: £15,705; Total Liabilities: £-9,310; Shareholders' Funds: £6,395). Four consecutive years of identical figures, combined with nil employees and "No description of principal activity" in the accounts, strongly suggests this company is not actively trading. The entity appears to exist in a dormant-like state, despite not being formally classified as dormant.

3. Positive Indicators

• Accounts Filed and Current: The most recent accounts (year ending 30 June 2025) have been filed and are not overdue, indicating some level of ongoing compliance.
• Shareholders' Funds Recovered to Positive Territory: After being deeply negative (-£682,944 in FY2020-2021), shareholders' funds have improved to £6,395. While modest, this at least removes the immediate insolvency risk from a balance sheet perspective.
• Longevity of Entity: Incorporated in 2008, the company has existed for over 17 years, suggesting it has navigated various business cycles—though the name changes and financial volatility raise questions about continuity of operations.

4. Due Diligence Notes

Item 1 – Strike-Off Origin and Status Urgently determine whether the strike-off was initiated voluntarily by the director or by a third party (e.g., a creditor). If by a third party, this likely indicates unresolved debts or disputes. Check the Gazette for strike-off notices and any objections filed.

Item 2 – 2017-2018 Financial Collapse Obtain the full accounts for FY2017 and FY2018 to understand the £1.36 million swing in shareholders' funds. As a micro-entity, the filed accounts will provide minimal detail, but the prior year comparatives may offer insight. Consider whether this relates to the name changes (COMPRESSAIR → COMPRESSENERGY → LIVING SOLUTIONS GLOBAL) and whether the business model fundamentally changed.

Item 3 – Overdue Confirmation Statement The confirmation statement was due by 21 May 2026 and is marked as overdue. While this may seem minor, failure to file confirmation statements can be a precursor to Companies House taking enforcement action and can also result in fines and potential criminal liability for directors.

Item 4 – Director and PSC Investigation Kent Leslie Walwin serves as both sole director and PSC with "significant influence or control." Investigate Mr. Walwin's other directorships, disqualification history, and track record. Also investigate SALLOWS ASSOCIATES LTD (corporate secretary) to understand whether this is a professional services firm or a related entity.

Item 5 – Nature of Current Assets With £15,705 in current assets and nil employees, determine the composition of these assets. If they are primarily debtors rather than cash, this raises questions about collectability and whether the company has any operational cash flow.

Item 6 – Creditor Analysis The £9,310 in current liabilities has remained static for four years. Identify who these creditors are—whether they are related parties, the director, or third parties. Stale creditor balances that never change suggest they may be written off or are related-party in nature.