Company Number: 14761626

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: HIGH

   Justification: The company PORTABLE APPLIANCE TESTING LTD was incorporated recently in March 2023 and has filed dormant accounts showing minimal financial activity with net assets of only £1. There is no operational trading history or financial data indicating revenue, profit, or cash flows. This lack of financial substance presents a high risk regarding the company’s ability to meet obligations or sustain operations.

2. Key Concerns:

   • Dormant Status and Lack of Trading History: The company has filed dormant accounts for the first financial year, indicating no trading activity. This raises concerns about the viability and operational stability of the business.

   • Minimal Capitalization: The share capital is just £1, and net assets equal the same, reflecting no tangible equity cushion to absorb losses or fund operations.

   • Single Director and Shareholder Control: One individual, David John Jones, controls 100% of shares and voting rights. While common in small startups, this concentration of control could imply governance risks, especially if there are no other experienced officers or independent oversight.

3. Positive Indicators:

   • Compliance with Filing Requirements: Despite being newly incorporated and dormant, the company has filed its accounts and confirmation statements on time, demonstrating regulatory compliance.

   • Clear Industry Classification: The company is registered under SIC 71200 (Technical testing and analysis), which provides a clear indication of its intended business activity.

   • No Indication of Director Misconduct: The sole director has no publicly noted disqualifications or governance issues.

4. Due Diligence Notes:

   • Investigate Business Plan and Funding: Since the company is dormant, verify intentions for future trading, funding sources, and milestones for operational commencement.

   • Confirm Director’s Background and Capability: Assess the director’s relevant experience and financial standing to support the company’s planned activities.

   • Monitor Future Filings for Trading Activity: Review subsequent accounts and confirmation statements to track any changes in trading status, financial health, or increased capitalization.