PREP 24 LTD

Executive Summary

PREP 24 LTD demonstrates ongoing financial stress with persistent negative net assets and a notable liquidity gap, raising high solvency and cash flow risks. Despite regulatory compliance and centralized ownership, the company’s micro-entity status and limited financial disclosures constrain a full assessment of operational viability. Further due diligence into liabilities and business operations is advised before considering investment.

PREP 24 LTD - Analysis Report

Company Number: 12894384

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk given persistent negative net assets and shareholders’ funds, with net liabilities worsening from (£4,168) in 2020 to (£8,840) in 2024. Current liabilities substantially exceed current assets, indicating liquidity concerns despite a slight improvement in current assets in 2024.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has had negative equity throughout its history, demonstrating ongoing losses or accumulated deficits that erode financial stability.
• Liquidity Mismatch: Current liabilities (£10,833 in 2024) greatly exceed current assets (£1,993 in 2024), raising concerns about the company’s ability to meet short-term obligations as they fall due.
• Small Scale and Limited Financial Transparency: As a micro-entity, the company has minimal disclosure and only one employee, limiting visibility into operational scale and sustainability.

3. Positive Indicators:

• Filing Compliance: The company is up to date with its accounts and confirmation statement filings, with no overdue reports, which suggests sound regulatory compliance.
• Single Controlling Shareholder: Full ownership and control by Mr. Areeb Amar Gulzar could enable decisive management actions and potentially facilitate financial support if needed.
• Slight Improvement in Current Assets: The increase in current assets from £1 in 2023 to £1,993 in 2024 may indicate some improvement in short-term liquidity.

4. Due Diligence Notes:

• Investigate the source and nature of current liabilities to assess any contingent risks or creditor pressures.
• Review cash flow statements or bank statements if available to better understand liquidity management and working capital cycles.
• Assess the business model and revenue streams given the SIC codes (service activities, freight transport, and retail mail order) for operational viability and revenue diversification.
• Confirm if there have been any director loans or shareholder funding injections that are not reflected in the balance sheet.
• Consider the implications of the previous name change and any associated restructuring or strategic shifts.