NEXT NEST LIMITED

Executive Summary

Next Nest Limited exhibits high financial risk due to significant negative net assets and a large creditor balance exceeding total assets. The lack of liquidity and operational scale further heighten concerns over the company’s ability to meet its obligations. While the fixed asset base and up-to-date filings are positive factors, thorough due diligence on asset quality and creditor arrangements is essential before considering investment.

NEXT NEST LIMITED - Analysis Report

Company Number: 13741298

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risk, with net liabilities reported in the latest accounts and current liabilities vastly exceeding current assets. The balance sheet indicates negative net assets of £11,072 as of 2023, suggesting financial distress.

2. Key Concerns:

• Solvency and Negative Equity: The company’s creditors due after more than one year (£776,256) exceed the total assets, resulting in negative shareholders’ funds and net liabilities, which is a strong red flag for insolvency risk.
• Severe Liquidity Mismatch: Current assets (£184) are negligible compared to current liabilities, indicating an inability to meet short-term obligations, raising concerns about cash flow and operational continuity.
• Lack of Operational Activity: The company reports zero employees and minimal current assets, which may suggest minimal business activity or operational scale insufficient to generate revenue or cash flow.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory filing requirements, reducing regulatory risk for investors.
• Fixed Asset Base: There is a substantial fixed asset base (£765,000) which may represent property or real estate holdings that could potentially be liquidated or leveraged.
• Single Controlling Shareholder: Having a sole controlling shareholder (owning 75-100% shares and voting rights) can facilitate decisive management actions, including restructuring or recapitalization.

4. Due Diligence Notes:

• Investigate the nature, valuation, and liquidity of the fixed assets to assess recovery prospects and potential for refinancing.
• Review the terms and maturity profile of the long-term creditors (£776,256) to understand any imminent repayment obligations or restructuring agreements.
• Assess the company’s cash flow projections, revenue model, and business plan to evaluate operational viability going forward.
• Confirm if the company is currently trading or dormant despite active status, and clarify the absence of employees and minimal current assets.
• Examine any contingent liabilities, guarantees, or off-balance sheet exposures not reflected in the micro-entity accounts.