Risk Assessment: MULTIPLAN SERVICES LTD (06353570)

1. Risk Rating: HIGH

The company bears a "Proposal to Strike Off" status, which is the single most critical risk factor and alone warrants a HIGH rating. This status indicates proceedings are underway to remove the company from the Companies House register. Combined with an overdue confirmation statement, an extremely thin capital base, and a proposed dividend that would render net assets negative, this entity presents fundamental solvency and continuity concerns that make it unsuitable for institutional investment consideration.

2. Key Concerns

Concern 1: Strike-Off Proceedings

The company status of "Active – Proposal to Strike Off" is a critical red flag. This means either the director has applied for voluntary dissolution, or Companies House has initiated compulsory strike-off proceedings (typically for non-compliance with filing obligations). Either scenario signals the likely cessation of the business. Any counterparty exposure or contractual relationship would be at material risk.

Concern 2: Proposed Dividend Exceeds Net Assets

The 2025 accounts disclose a proposed dividend of £500 against net assets of only £204. If this dividend is paid, net assets would become negative (£204 - £500 = -£296), pushing the company into technical insolvency. Under the Companies Act 2006, dividends must be paid out of distributable profits; the legality of this proposed distribution requires scrutiny. The P&L reserve stands at only £194, which is insufficient to cover the £500 dividend.

Concern 3: Overdue Confirmation Statement

The confirmation statement was due by 30 August 2026 and is marked as overdue. This filing delinquency, combined with the strike-off status, suggests either administrative neglect or a deliberate wind-down. It raises questions about the director's commitment to ongoing compliance and governance.

3. Positive Indicators

• Accounts Filed on Time: Despite the strike-off status, the company filed annual accounts up to 31 August 2025, which were not overdue. This suggests some level of administrative engagement remains.
• Improved Net Asset Position: Net assets rose from £16 (2024) to £204 (2025), and the P&L reserve improved from £6 to £194, indicating the company generated a small profit during the year rather than a loss.
• Liabilities Reduced: Total current liabilities decreased from £1,865 to £1,212, with trade creditors cleared entirely (down from £773 to £0), suggesting the company is meeting its obligations as it winds down.
• No Director Disqualifications: The sole director, Mrs Stanka Nenova Popova, has no recorded disqualification orders.

4. Due Diligence Notes

1. Determine Strike-Off Origin: Investigate whether the strike-off is voluntary (director-initiated via DS01 form) or compulsory (Companies House-initiated for non-compliance). This distinction materially affects risk interpretation—voluntary dissolution suggests an orderly wind-down, while compulsory strike-off raises governance concerns.

2. Dividend Legality and Payment Status: Confirm whether the proposed £500 dividend has been paid. If paid from insufficient distributable reserves, this could constitute an unlawful distribution under Section 847 of the Companies Act 2006, potentially creating personal liability for the director.

3. Revenue and Trading Status: The filed accounts are filleted (abbreviated), meaning no profit and loss statement is publicly available. It is impossible to determine from the filed data whether the company has active revenue streams or is effectively dormant. The accounts state "No description of principal activity," which is ambiguous. Clarify whether the company is still trading.

4. Nature of Accruals: The £550 in accruals (up from £500) and £162 in taxes/social security should be investigated. Understanding what these relate to may reveal ongoing obligations or contingent liabilities.

5. Creditor Identity and Related-Party Exposure: With only one director/PSC controlling over 75% of shares and voting rights, determine whether any creditors are related parties. The 2024 trade creditors of £773 that were cleared in 2025 may have been owed to the director or connected parties.

6. Operational Capacity: The company reports 2 employees and is registered at a residential flat address. Assess whether this entity has any operational substance or is functioning as a personal service vehicle.

7. Historical Business Shift: The company traded as "Multiplan Cleaning Services Limited" until March 2015 before adopting its current name. Understand the nature of the business pivot and whether the current "other service activities" classification represents active trading or a residual shell.