Company Number: 13002516

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: HIGH
   The company exhibits clear signs of financial distress, with negative net assets and net current liabilities in the most recent year. The inability to cover short-term liabilities from current assets and eroded shareholders’ funds present significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company transitioned from positive equity (£100) to a net liability position (-£9), reflecting accumulated losses or write-downs that impair its financial stability.
• Negative Net Current Assets: Current liabilities exceed current assets by £109, indicating potential liquidity constraints and a risk of inability to meet short-term obligations as they fall due.
• Minimal Cash Balance: Cash on hand is only £191, which is insufficient to cover the current liabilities of £300, suggesting tight cash flow and limited operational buffer.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both annual accounts and confirmation statement filings, demonstrating compliance with regulatory requirements.
• Active Website and Contact Details: Liza Traders Ltd maintains an active web presence and valid contact information, which supports operational transparency and accessibility.
• No Employees: With zero employees reported, the company may have low fixed overhead costs, potentially allowing it some operational flexibility.

4. Due Diligence Notes:

• Examine Recent Trading Performance and Cash Flow: Investigate the causes of the negative equity and working capital position, including recent turnover, profitability, and cash flow trends.
• Assess Director’s Plans: Clarify the director’s strategy for returning the company to a solvent position, including any planned capital injections or restructuring efforts.
• Review Contractual Obligations: Given the SIC codes in construction and plastering, understand the scale and duration of contracts, payment terms, and any outstanding receivables or payables that might impact liquidity.
• Consider Related Party Transactions: Verify whether there are any loans or financial support arrangements involving the director or related entities that are not reflected in the accounts.
• Confirm No Pending Insolvency Proceedings: Although not currently in liquidation or administration, confirm no informal insolvency risks exist.