LOSTOCK PHARMACHEM LIMITED

Executive Summary

Lostock Pharmachem Limited is currently dormant with sustained negative net asset values indicating financial distress and potential solvency risk. While regulatory filings are up to date and management appears stable, the lack of operational activity combined with significant liabilities presents notable concerns for investors. Further investigation is needed into creditor obligations and strategic intentions to ascertain future viability.

LOSTOCK PHARMACHEM LIMITED - Analysis Report

Company Number: 13111184

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, reflected by persistent negative net assets and shareholder funds, indicating liabilities substantially exceed assets. The dormant status and minimal capital further exacerbate concerns about operational viability and liquidity.

2. Key Concerns:

• Consistent Negative Net Assets: Over the last three financial years, the company’s net assets remain deeply negative (£-62,545), signaling ongoing financial distress and potential insolvency risk.
• Dormant Status with Large Creditors: Although accounts classify the company as dormant, current liabilities stand at £62,645 with almost no assets, implying potential unpaid obligations and no active trading to cover these.
• Lack of Operational Activity: No employees and dormant filing status suggest no ongoing business operations, raising questions about future revenue generation and sustainability.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements were noted, demonstrating adherence to regulatory filing deadlines which reduces governance risk.
• Stable Directorship: The company maintains two current directors with a stable appointment history since incorporation, which may indicate steady management oversight.
• Micro-Entity Accounting Exemptions: Utilization of micro-entity dormant exemptions reduces complexity and audit costs, appropriate given current inactivity.

4. Due Diligence Notes:

• Investigate the nature and origin of the sizeable current liabilities and creditor claims given absence of trading activity.
• Verify the intentions of the shareholders and directors regarding future business plans or potential restructuring to address negative equity.
• Confirm no undisclosed contingent liabilities or off-balance-sheet risks exist despite dormant status.
• Review any related party transactions or loans that may have contributed to the financial position.
• Assess the impact of director resignations in 2021 and 2022 on corporate governance and continuity.