NIX PALMER BUILDING SOLUTIONS LIMITED

Executive Summary

Nix Palmer Building Solutions Limited demonstrates a high risk profile due to sustained negative equity and considerable liquidity challenges. While compliance with filing requirements is maintained, the company's financial metrics suggest ongoing solvency concerns and limited operational scale. Further investigation into liabilities and business plans is advised to clarify prospects for financial recovery.

NIX PALMER BUILDING SOLUTIONS LIMITED - Analysis Report

Company Number: 12432395

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and significant current liabilities exceeding current assets, indicating solvency risk. The absence of an audit and minimal operating scale add to uncertainty about financial robustness and operational sustainability.

2. Key Concerns:

• Negative Net Assets: Shareholders' funds declined from -£10,843 in 2020 to -£40,886 in 2024, indicating ongoing losses and eroding equity.
• Liquidity Pressure: Current liabilities are large (£31,724 as of 2024) compared to minimal current assets (£273), resulting in negative working capital and potential cash flow difficulties.
• Single Director and Employee: The company relies on one individual both as sole director and employee, which may impact operational resilience and governance oversight.

3. Positive Indicators:

• Timely Filing: No overdue accounts or confirmation statements suggest compliance with filing regulations.
• Exemption from Audit: The micro-entity status reduces administrative burden, though it limits financial transparency.
• Stable Control Structure: The sole director and 75-100% controlling shareholder are consistent, which can facilitate decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the company's liabilities, especially the large short-term creditors and long-term creditors (£7,641 in 2024).
• Assess the company’s cash flow forecasts and plans to return to positive net assets or profitability.
• Review any related-party transactions or director loans that may be impacting financial position.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations.
• Examine the business model and pipeline to evaluate operational viability given the minimal assets and resources.