POWER TOOL SERVICE (LONDON) LTD

Executive Summary

POWER TOOL SERVICE (LONDON) LTD currently exhibits financial distress characterized by negative net assets and a working capital shortfall, posing significant solvency risks. The company’s minimal operational footprint and recent governance changes warrant careful scrutiny. However, regulatory filings are up to date and no formal insolvency process is underway, providing a baseline for further due diligence.

POWER TOOL SERVICE (LONDON) LTD - Analysis Report

Company Number: 13721626

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (£-191 as of 30 November 2023) and net current liabilities, indicating it is currently insolvent on a balance sheet basis. The absence of fixed assets and very low current assets relative to liabilities suggests limited financial resilience.

2. Key Concerns:

• Negative net assets and working capital deficit raise solvency concerns and risk of inability to meet short-term obligations.
• No recorded employees and minimal current assets (£540) point to very limited operational activity and sustainability challenges.
• Recent director change (Nov 2023) and concentrated ownership/control may present governance risks, especially with limited transparency on trading history.

3. Positive Indicators:

• Company is current with filings; no overdue accounts or confirmation statements, which supports regulatory compliance.
• Micro entity reporting exemption is appropriately applied, reflecting small scale consistent with available financial data.
• The company is still active and not in liquidation or administration, suggesting no immediate formal insolvency proceedings.

4. Due Diligence Notes:

• Review detailed cash flow and trading performance since incorporation to assess ongoing viability and operational activity.
• Investigate nature and timing of current liabilities to ascertain if amounts due are payable or potentially disputable.
• Confirm background and capacity of current director to manage company turnaround or growth, given recent appointment and sole shareholding.
• Evaluate any related party transactions or off-balance sheet liabilities not disclosed in micro entity accounts.