ON TRACK SUPPORT LTD

Executive Summary

ON TRACK SUPPORT LTD exhibits significant financial distress characterized by negative net assets and net current liabilities, coupled with minimal operational scale. While compliance filings are current and the business remains active under sole director control, there are substantial solvency and liquidity risks that warrant further scrutiny. Prospective investors should conduct detailed due diligence on cash flow and revenue sustainability before considering exposure.

ON TRACK SUPPORT LTD - Analysis Report

Company Number: 13126959

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity concerns. The micro-entity status with minimal capital and no employees further heightens operational risk.

2. Key Concerns:

• Solvency Risk: Negative net assets of £1,372 as of January 2024 show the company’s liabilities exceed its assets, raising doubts about its ability to meet long-term obligations.
• Liquidity Issues: Net current liabilities of £1,689 at the latest year-end reflect insufficient current assets to cover short-term liabilities, suggesting cash flow constraints.
• Operational Sustainability: The company has no employees other than the director and minimal fixed assets, relying likely on freelance or consultancy work. This raises questions about scale, growth prospects, and resilience.

3. Positive Indicators:

• Timely Filing: Accounts and confirmation statements are up to date without overdue filings, indicating compliance with Companies House requirements.
• Active Status: The company remains active with a consistent director and no insolvency proceedings, suggesting ongoing operations.
• Sole Control: The single director and 75-100% ownership by Mrs Nicola Jane Green may allow for swift decision-making and flexible management.

4. Due Diligence Notes:

• Investigate the company’s cash flow position and working capital management to understand how short-term liabilities are being met.
• Clarify the nature and stability of revenue streams, given the absence of employees and minimal fixed assets.
• Review any related party transactions or director loans that might be supporting operations and their terms.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.
• Assess the business model’s scalability and plans for addressing persistent losses and negative equity.