Risk Analysis: MANAGED CARE SOLUTIONS LIMITED (09732048)

1. Risk Rating: HIGH

The company presents significant solvency and operational concerns. Net assets have remained at a nominal £5 for a decade while total assets have collapsed from £63,203 (2017) to effectively zero (2025). The business appears to be a non-trading shell with no employees, no tangible assets, and no visible revenue-generating activity.

2. Key Concerns

1. Catastrophic Asset Decline with No Visible Trading Activity Total assets have declined by approximately 99.99% over the review period — from £63,203 (FY2017) to £5 (FY2025). The 2025 balance sheet shows zero fixed assets, zero current assets, and zero creditors. This trajectory strongly suggests the company has ceased substantive operations and is being run as a dormant or near-dormant entity. The complete absence of revenue, cost, or profit data in the micro-entity filings makes it impossible to assess trading viability, which is itself a concern.

2. Persistent Liability-to-Asset Matching Suggests Related-Party Structuring From FY2016 through FY2024, total liabilities exactly matched total assets in every year, leaving net assets at precisely £5. This pattern is highly unusual for a trading entity and strongly suggests the assets were funded entirely by liabilities — likely director loans or related-party borrowings. The FY2025 accounts show both assets and liabilities clearing to zero, indicating these intercompany/director balances have been repaid or written off, leaving nothing in the business.

3. Single-Person Control with No Governance Safeguards Mr Marvin Jon Lee serves as sole director and holds significant influence or control as the registered PSC. There is no secretary, no board diversity, and no separation of ownership and management. For an entity that previously held over £63,000 in assets, this concentration of control presents material governance risk, particularly given the unexplained asset depletion over time.

3. Positive Indicators

• Filing Compliance: Both accounts and confirmation statements are current and not overdue. The FY2025 accounts were approved and signed on 31 May 2026, within the statutory deadline.
• No Insolvency Proceedings: The company is not in liquidation, administration, or receivership. No director disqualification records are flagged.
• Liabilities Cleared: The FY2025 balance sheet shows zero liabilities, meaning the company has no outstanding debts. While this also means it has no assets, at minimum there is no creditor exposure or solvency pressure.
• Company is Technically Solvent: Net assets remain positive at £5, meaning the company can meet its obligations as they fall due — though this is a trivially low threshold.

4. Due Diligence Notes

a) Business Activity Verification The SIC code (82990 — other business support service activities) and the 2019 name change from SPORTSHUB365 LTD suggest a complete pivot in business model. It is essential to determine whether the company is actively trading or merely maintaining registration. Request management confirmation of current trading status, client contracts, and revenue pipeline.

b) Director Loan Account Reconciliation The near-perfect matching of assets to liabilities over multiple years warrants detailed investigation. Request director loan account statements to understand the nature of the £63k+ in liabilities that have since been cleared. This will clarify whether funds were extracted by the director or written off, and whether any tax implications arose.

c) Related-Party and Group Structure Determine whether MANAGED CARE SOLUTIONS LIMITED operates within a group structure or has related-party transactions not visible in micro-entity accounts. The name change and asset depletion could indicate a transfer of business to another entity.

d) Purpose of Continued Operation With zero employees, zero assets, and zero liabilities, the commercial rationale for maintaining this company should be clarified. It may be held for a future purpose, serve as a vehicle for a specific contract, or be in the process of being wound down voluntarily. Request a statement of future intentions from the director.

e) Creditors Due After One Year — FY2024 Reconciliation The FY2024 balance sheet showed £3,361 in creditors due after more than one year, which reduced to £0 in FY2025. Clarify the nature of this creditor and how it was settled.