PLANET ONLINE LTD

Executive Summary

PLANET ONLINE LTD exhibits medium financial risk marked by persistent negative net assets and net current assets, which could impact solvency and liquidity. Despite this, the company maintains regulatory compliance and stable management, though operational scale appears minimal. Further investigation into asset quality, business sustainability, and financial structure is recommended to fully assess investment risk.

PLANET ONLINE LTD - Analysis Report

Company Number: 12731074

Analysis Date: 2025-07-29 14:24 UTC

1. Risk Rating: MEDIUM

Justification: PLANET ONLINE LTD is a micro-entity with a relatively small balance sheet and no employees, which limits operational scale. The company shows negative net current assets and net assets for the most recent two financial years, indicating potential liquidity and solvency concerns. However, there is no indication of overdue filings or regulatory non-compliance. The company appears to be maintaining timely compliance and is active with stable director appointments.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £8,001 as of April 2024 (and £12,655 in 2023), suggesting the company’s liabilities exceed its assets, which poses solvency risks.
• Negative Net Current Assets: Current liabilities exceed current assets by £8,698 in 2024, highlighting potential liquidity issues that may affect the company’s ability to meet short-term obligations.
• Lack of Operational Scale: The absence of employees and low fixed assets indicate limited ongoing operational activity, raising questions about sustainability and business model viability.

3. Positive Indicators:

• Timely Regulatory Compliance: No overdue accounts or confirmation statement filings are reported, which suggests good governance and regulatory adherence.
• Stable Leadership: Both directors have been in place since incorporation in 2020 with relevant professional backgrounds (accountants), supporting consistent management.
• Incremental Growth in Current Assets: Current assets increased from £7,407 in 2023 to £15,131 in 2024, which could indicate improving cash or receivables position.

4. Due Diligence Notes:

• Clarify the nature and collectability of current assets to assess liquidity quality, given the negative net current asset position.
• Investigate the reasons behind consistent negative net assets and whether there are plans for recapitalization or debt restructuring.
• Review business model and revenue generation sources, as no employees and limited fixed assets suggest minimal operational activity.
• Verify whether the company has any off-balance sheet liabilities or contingent risks not reflected in the micro-entity accounts.
• Confirm related party transactions, given the sole shareholder/director control and small share capital.