NL MACHINE TOOL CONSULTING LIMITED

Risk Rating: HIGH The company presents a terminal risk profile. It is officially dissolved, meaning it no longer exists as a legal operating entity. Furthermore, in its final filing period, it was balance-sheet insolvent with net liabilities of £10,478 and a severe liquidity deficit, rendering it entirely incapable of meeting its financial obligations without external, likely undisclosed, support.

Key Concerns - Corporate Status and Insolvency: The company is dissolved (as of 11 August 2026, per the record) and concluded its final operational period with negative equity of £10,478. A negative net asset position means the company's liabilities exceed its assets, a primary indicator of insolvency. - Critical Liquidity Deficit: For the period ending 31 December 2025, current assets stood at a mere £2,758 against current liabilities of £13,236. This indicates the company held less than 21p for every £1 of short-term debt owed, representing an acute liquidity crisis. - Extreme Financial Volatility: The financial history reveals massive swings in net assets, from a positive position of £30,992 in February 2023 to a negative (£10,478) by December 2025. This level of volatility in a micro-entity suggests highly unpredictable trading conditions or significant write-offs of assets.

Positive Indicators - Administrative Compliance: Despite the financial distress, the company's accounts for the final period were filed on time (not overdue), and the confirmation statement is up to date. This suggests the director maintained basic statutory compliance during the wind-down. - Lean Operational Structure: The company operated with zero employees throughout its final periods, which limits exposure to fixed payroll costs and employment liabilities. - Sole Director Control: Mr. Norman Loughton holds over 75% of the shares and is the sole director. This concentrated control allows for swift, unilateral decision-making, which likely facilitated an orderly voluntary dissolution rather than a forced, costly administration.

Due Diligence Notes - Director's Loan Account / Liabilities: The filed micro-entity accounts provide no breakdown of the £13,236 in current liabilities. It is highly probable that a significant portion of this debt is owed to the director (a director's loan) rather than third-party creditors, which often explains how a micro-entity continues to trade while technically insolvent. - Change in Accounting Reference Date: The financial year-end was changed from 28 February to 31 December, creating a shortened 10-month final accounting period. This is a common administrative step taken by directors preparing a company for dissolution and cessation of trade. - Creditor Risk and Restoration: Because the company was dissolved with outstanding liabilities, any unpaid third-party creditors retain the legal right to apply to the court to restore the company to the register. Potential investors or associated parties should be aware of this lingering contingent risk. - Asset Realization: Fixed assets dropped from £338 to £0 in the final period, and current assets fell from £8,869 to £2,758. Further investigation is required to determine if assets were sold at fair value, written off, or distributed to the director prior to dissolution. - Information Limitations: As a micro-entity, the company is only required to file a balance sheet. There is no profit and loss account, cash flow statement, or detailed notes, which severely limits the ability to assess operational profitability or the specific sources of the rapid financial deterioration.