NITRO-EV LTD

Executive Summary

NITRO-EV LTD exhibits a high risk profile primarily due to its zero net asset position and lack of working capital as of the latest accounts, raising serious concerns regarding solvency and liquidity. While compliance and governance appear satisfactory, the financial data suggests operational instability and potential distress. Further investigation into the causes of asset depletion and current trading status is strongly recommended before considering investment.

NITRO-EV LTD - Analysis Report

Company Number: 13221298

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: HIGH
   The company shows zero net assets and zero current assets as of the latest accounting period, indicating an absence of financial resources. The lack of working capital and equity raises significant solvency and liquidity concerns.

2. Key Concerns:

• Zero Net Assets and Working Capital: The balance sheet at 28 February 2024 reflects no fixed or current assets and no liabilities, resulting in net assets of zero. This implies no buffer to meet obligations or fund operations.
• Declining Financial Position: Compared to the 2023 year-end, where fixed assets and net assets were £5,000, the complete write-down to zero in 2024 suggests asset impairment or disposal without replacement, signaling operational or financial distress.
• Minimal Share Capital and Operational Scale: Share capital is only £1.00, and the company remains a micro-entity with one employee. The very small scale coupled with declining assets questions the sustainability of ongoing operations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is active, has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Clear Director and Control Structure: The single director is identified with no adverse records, and no indications of governance issues appear from available data.
• Established Industry Activity: The company operates in vehicle maintenance and repair, a potentially stable sector, although scale is minimal.

4. Due Diligence Notes:

• Investigate reasons for the asset write-down from £5,000 net assets in 2023 to zero in 2024 and whether the company has any off-balance sheet liabilities or contingent obligations.
• Examine cash flow statements or internal management accounts (if available) to assess liquidity position and ability to meet short-term obligations.
• Review trading history and current contracts or client base to evaluate operational viability and prospects for revenue generation beyond the £26k turnover seen in 2023.
• Confirm there are no related party debts or loans that may impact financial stability.
• Validate the absence of any director disqualifications or pending legal actions beyond public company records.