OVERKILL PERFORMANCE UK LTD

Executive Summary

OVERKILL PERFORMANCE UK LTD exhibits significant solvency and liquidity risks, evidenced by negative net assets and a large working capital deficit as of March 2024. While the company remains compliant with statutory filings and operational with a small workforce, the rapid financial deterioration and high short-term liabilities warrant careful scrutiny of cash flows, creditor terms, and director support before investment consideration.

OVERKILL PERFORMANCE UK LTD - Analysis Report

Company Number: 13112582

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and net current liabilities as of the latest financial year, indicating solvency and liquidity concerns that elevate financial risk.

2. Key Concerns:

• Negative Net Assets: The company’s net assets stand at approximately -£23,756, reflecting an erosion of shareholder equity and potential insolvency risk.
• Severe Working Capital Deficit: Current liabilities (£147,709) exceed current assets (£38,923) by about £108,786, suggesting the company may struggle to meet short-term obligations as they fall due.
• Rapid Financial Deterioration: The prior year shows zero reported assets and liabilities, with a drastic increase in liabilities and negative equity within a short timeframe, raising questions on operational or financial stability.

3. Positive Indicators:

• Compliance with Filings: The company has no overdue accounts or confirmation statements, indicating regulatory compliance and timely statutory reporting.
• Active Status & Growing Workforce: The company remains active with an average of 5 employees during the latest period, up from zero previously, signaling operational activity and some scale development.
• Exemption from Audit: Use of micro-entity provisions and audit exemption reduces compliance burden, typical for small companies.

4. Due Diligence Notes:

• Examine Nature and Terms of Current Liabilities: Investigate what constitutes the £147,709 current liabilities (e.g., trade creditors, loans, overdrafts), their maturity profiles, and any overdue payments.
• Assess Cash Flow and Profitability Trends: Since micro-entity accounts are limited, request management accounts or cash flow statements to understand operational cash generation or losses.
• Review Director’s Plans and Support: Given the negative equity, confirm if shareholder or director funding is ongoing or planned to support solvency.
• Confirm Fixed Asset Valuation: Verify the basis and liquidity of fixed assets (£85,031), as these may not be readily convertible to cash to meet liabilities.
• Evaluate Business Model and Market Position: Considering the SIC codes for motor vehicle parts retail and repair, assess market conditions and competitive pressures impacting sustainability.
• Director and Governance Checks: While no disqualifications are noted, consider background checks on the sole director for additional governance assurance.

---