LOKI PROD LIMITED

Executive Summary

LOKI PROD LIMITED presents significant financial risk due to negative net assets and working capital deficits, compounded by minimal operational activity and no employees. While regulatory compliance is maintained, investors should be cautious given the potential solvency and liquidity concerns inherent in its financial position and holding company structure. Further investigation into governance and underlying assets is recommended to clarify sustainability prospects.

LOKI PROD LIMITED - Analysis Report

Company Number: 13576906

Analysis Date: 2025-07-29 14:57 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets (-£192) and net current liabilities, indicating potential insolvency risks. Its minimal current assets (£10) compared to current liabilities (£1,205) suggest liquidity difficulties. The absence of employees and consistent financial figures over two years indicate limited operational activity and potential sustainability issues.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The balance sheet shows total net liabilities of £192 and net current liabilities of £1,195, raising concerns about the company’s ability to meet short-term obligations.
• Lack of Operational Activity: The company reports zero employees and negligible current assets, implying minimal or no active business operations, which could impair revenue generation and cash flow.
• Director Resignation and Governance: The sole director resigned in February 2025, and a new director signed the accounts, requiring verification of continuous effective management and compliance.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance.
• Micro-entity Status: The company benefits from reduced filing requirements, which could lower administrative costs.
• Holding Company Activity: Classified as a holding company (SIC 64209), potentially indicating a role in managing investments or subsidiaries rather than operational trading, which may explain low asset and employee figures.

4. Due Diligence Notes:

• Investigate the company’s business model and cash flow sources to assess how it services liabilities with limited current assets.
• Confirm the identity and background of the current director(s) post-February 2025 resignation for governance stability.
• Review any underlying investments or subsidiaries held by the company to understand asset composition beyond the micro-entity financial statements.
• Ascertain whether the company has any contingent liabilities or off-balance-sheet commitments not reflected in the filings.
• Evaluate reasons for repeated identical financial figures over two years, ensuring accuracy and absence of dormant status misclassification.