Risk Assessment: P COOPER & ASSOCIATES LIMITED

1. Risk Rating: MEDIUM

The company is dormant and no longer trading, with net assets reduced to £2. While there are no solvency concerns given zero liabilities, the entity has been systematically wound down from a previously active business (net assets of £58,664 in 2016), and now holds negligible value. The dormant status and absence of operations present meaningful concerns for any investor or counterparty evaluating engagement.

2. Key Concerns

1. Dramatic Erosion of Net Assets Over Sustained Period The financial trajectory shows a consistent and severe decline: net assets fell from £58,664 (2016) to £22,309 (2017) to £6,300 (2018) to £1,390 (2019), then steadily downward to £2 by 2025. This represents a near-total depletion of shareholder value over approximately nine years. The pattern suggests either sustained trading losses, asset distributions, or a deliberate winding-down of operations.

2. Dormant Status with No Trading Activity The latest accounts explicitly confirm the company is "no longer trading but traded in the past." The SIC code (70229 – Management consultancy) indicates this was previously an active consultancy business. A dormant company generates no revenue, has no operational infrastructure, and cannot fulfill commercial obligations. Any business relationship would carry execution risk.

3. Minimal Asset Base Limits Recovery Potential Net assets of £2 consist solely of called-up share capital not paid. There are no fixed assets, no current assets, and no cash reserves. The company has no financial cushion to resume operations or absorb any unexpected liabilities that might arise.

3. Positive Indicators

• Zero Liabilities: The company carries no creditors, provisions, or accrued obligations. From a solvency perspective, there is no debt burden or risk of creditor action.
• Filing Compliance: Accounts are up to date (made up to 31 August 2025, next due May 2027) and the confirmation statement is current. There are no overdue filings, which suggests competent administrative oversight.
• Clean Corporate Status: The company remains Active, is not in liquidation, administration, or receivership, and there are no disqualification records against the director.

4. Due Diligence Notes

1. Reason for Dormancy: Investigate why the company became dormant. Was this a planned wind-down, a response to market conditions, or related to regulatory or legal issues? Understanding the catalyst is essential.

2. Director's Other Interests: Mr Paul Andrew Cooper holds 25-50% of shares. Determine whether he has active trading vehicles that may have succeeded this company's operations, which could indicate business transfer concerns.

3. Historical Liability Settlement: The 2016-2018 period shows significant liabilities (£79,219 in 2016, £35,191 in 2017, £19,398 in 2018) that were fully cleared by 2019. Verify how these were settled—whether through trading cash flows, asset disposals, or capital contributions.

4. Residual Obligations: Despite zero reported liabilities, dormant companies can retain contingent liabilities, contractual commitments, or potential tax exposures not captured on the balance sheet. Request confirmation of any off-balance-sheet obligations.

5. Future Intentions: Clarify whether the company is being maintained for a specific purpose (e.g., holding intellectual property, preserving a brand, regulatory licensing) or is simply awaiting dissolution.