OZONE CLEAN AIR LIMITED

Risk Rating: HIGH The company exhibits clear balance-sheet insolvency, with total liabilities exceeding total assets by £3,462 as of March 2026, a position that has worsened slightly from the prior year. The persistent negative working capital and lack of detailed profitability data in micro-entity accounts elevate the risk profile, as the company relies entirely on creditor forbearance or external support to continue trading.

Key Concerns: - Balance-Sheet Insolvency: As of 31 March 2026, the company's net assets are negative (£-3,462). Under UK insolvency law, if the company cannot pay its debts as they fall due, or if liabilities exceed assets, it is technically insolvent. This raises substantial going concern doubts. - Liquidity Deficit: Current liabilities (£12,075) significantly exceed current assets (£8,613), resulting in negative working capital of £-3,462. This indicates the company lacks the liquid resources to comfortably settle its short-term obligations without additional funding or asset realizations. - Deteriorating Financial Trajectory: The company has experienced a severe decline in its financial position over the last five years. Net assets dropped from a positive £16,530 in 2021 to a deficit of £-3,462 in 2026, suggesting sustained operational losses or capital withdrawals that have eroded the equity base.

Positive Indicators: - Regulatory Compliance: The company is fully up to date with its filing obligations at Companies House. The accounts for the year ending 31 March 2026 were approved and filed promptly, and the confirmation statement is not overdue, indicating the directors are maintaining their statutory duties. - Operational Longevity: Incorporated in 2009, the company has maintained an active status for over 15 years, demonstrating some historical resilience and longevity in the marketplace despite current financial headwinds. - Stable Ownership Structure: The company is controlled by its two directors, Keith Ferris and Susan Ann Francis, who each hold between 25% and 50% of the shares. This tight, aligned ownership structure often means that decisions regarding financial support (such as director loans) can be made swiftly to keep the company afloat.

Due Diligence Notes: - Nature of Liabilities: Because micro-entity accounts provide no breakdown, it is crucial to determine the composition of the £12,075 in current liabilities. Specifically, an investor must ascertain how much is owed to directors versus third-party trade creditors. If the liabilities are primarily director loans, the insolvency risk is mitigated by the likelihood that these loans will not be called in. - Going Concern Basis: The accounts contain no explicit going concern statement or director commentary regarding the company's ability to continue trading. Confirmation should be sought from the directors that they intend to support the company financially for the foreseeable future. - Revenue and Profitability: Micro-entity accounts omit the Profit & Loss account and the Cash Flow statement. It is impossible to determine from the filed data whether the core business of selling odour removal machines is currently generating positive cash flow or operating at a loss. - Operational Capacity: The filed accounts state the average number of employees is zero. Further investigation is required to understand how the business is operated (e.g., are the directors working unpaid, or are contractors used for fulfillment?) and how overheads are managed.