LUPSA ISOLATION LIMITED

Executive Summary

Lupsa Isolation Limited exhibits significant financial distress, evidenced by negative net assets and a negative cash position, raising serious concerns about solvency and liquidity. While statutory filings are current and the company remains active, the absence of employee and turnover data limits confidence in operational sustainability. Further due diligence is essential to verify trading performance and the validity of the director’s going concern assertion.

LUPSA ISOLATION LIMITED - Analysis Report

Company Number: 13007505

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: HIGH

Justification: Lupsa Isolation Limited shows a net negative asset position of -£11,168 as of 30 November 2024, indicating insolvency on a balance sheet basis. Despite the director’s statement about sales growth and profitability, no turnover or profit figures are disclosed, and the company has no employees. The cash balance is negative (£-13,421), suggesting liquidity issues or overdraft reliance. These financial indicators collectively signal significant risk regarding the company’s ability to meet its obligations and continue operations sustainably.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities position is a critical red flag for solvency risk.
• Negative Cash at Bank: The reported negative cash balance indicates potential liquidity constraints and cash flow difficulties.
• No Reported Employees or Turnover Disclosure: The absence of employees and lack of turnover or profit data hamper assessment of operational viability and revenue generation.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, suggesting compliance with statutory requirements.
• Single Director with Consistent Appointment: Continuity in management may provide stability in governance.
• Company Status Active and Not in Liquidation: Despite financial weaknesses, the company remains active and is not currently under formal insolvency procedures.

4. Due Diligence Notes:

• Verify Revenue and Profitability: Request detailed management accounts or turnover figures to assess actual trading performance and cash flows.
• Clarify Negative Cash Position: Investigate the nature of the negative cash at bank—whether overdraft facilities exist and their terms.
• Assess Going Concern Basis: Validate the director’s claim of sales growth and future viability with supporting evidence such as contracts, pipeline, or customer references.
• Examine Related Party Transactions: Review for any transactions with the director or related entities that may affect financial stability.
• Investigate Reason for Name Change: Understand the rationale behind renaming from Lorecris Ltd in March 2023 to Lupsa Isolation Limited for any operational or reputational implications.