PLATINUM HOUSE CLEARANCE SERVICES LTD

Executive Summary

PLATINUM HOUSE CLEARANCE SERVICES LTD exhibits significant liquidity and solvency challenges with negative working capital and declining net assets over the last year. Although the company remains compliant with filing requirements, the absence of employees and minimal current assets raise concerns about operational sustainability. Further investigation into provisions and cash flow management is essential to assess potential investment risk.

PLATINUM HOUSE CLEARANCE SERVICES LTD - Analysis Report

Company Number: 14281260

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company shows a consistent pattern of negative net current assets, indicating liquidity stress. Current liabilities significantly exceed current assets, and net assets have declined sharply over the last year. The absence of employees suggests minimal operational activity, raising sustainability concerns for this recently incorporated entity in a cash-intensive industry.

2. Key Concerns:

• Liquidity Risk: The current assets (£413) are far below current liabilities (£3,422) as of August 2024, with net current liabilities at £3,009, signaling potential difficulty in meeting short-term obligations.
• Declining Financial Position: Net assets dropped from £3,713 in 2023 to £1,327 in 2024, largely driven by increased provisions for liabilities and reduced tangible fixed assets, which could impair operational capacity.
• Operational Stability: The company reports no employees in either 2023 or 2024, which, combined with limited trade debtors and cash balances, suggests minimal ongoing trading activity and possible reliance on short-term creditor funding.

3. Positive Indicators:

• Compliance: No overdue filings or confirmation statements are reported, indicating good regulatory compliance and governance practices.
• Limited Audit Requirement: The company qualifies for audit exemption under small company rules, reflecting its size and filing status, reducing administrative burden.
• Industry Classification: Engaged in removal and non-hazardous waste collection services, sectors with steady demand, which could provide a foundation for future business development if liquidity improves.

4. Due Diligence Notes:

• Investigate the nature and timing of provisions for liabilities (£1,453) to assess contingent risks and possible claims against the company.
• Clarify the company's business model and revenue generation, given the zero employee count and low debtor balances, to determine operational viability.
• Review cash flow statements and creditor payment terms to evaluate the company's ability to meet immediate obligations and manage creditor relationships.
• Confirm any external financing arrangements or related party transactions not evident in the accounts that might impact solvency.