QUEST HQ LTD

Executive Summary

QUEST HQ LTD is a recently incorporated micro private company with limited equity and significant long-term liabilities relative to fixed assets, suggesting moderate solvency risk despite short-term liquidity adequacy. The company appears compliant with filing requirements and operational at a small scale, but investors should carefully evaluate debt terms and asset realizability to assess financial stability. Overall, the business is in an early stage with risks typical of small, highly leveraged entities.

QUEST HQ LTD - Analysis Report

Company Number: 14062432

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: MEDIUM
   The company shows net assets positive but very low (£7,780), indicating limited equity buffer. The large long-term liabilities relative to fixed assets raise concerns about solvency, although current assets exceed current liabilities suggesting short-term liquidity is adequate. The micro-entity status and small scale of operations limit comprehensive financial disclosure.

2. Key Concerns:

• High long-term creditors (£337,058) closely matching fixed assets (£310,578) suggest potential over-leverage and risk if asset values decline or liabilities crystallize.
• Very low equity base (£7,780) increases vulnerability to financial shocks and restricts ability to absorb losses or raise additional capital.
• Limited financial history (incorporated 2022) and small scale (2 employees) imply early-stage operational and financial stability is unproven.

3. Positive Indicators:

• Current assets (£36,097) comfortably exceed current liabilities (£1,837), indicating good short-term liquidity and potential to meet immediate obligations.
• No overdue filings and compliance with accounts and confirmation statement deadlines demonstrate management attention to regulatory requirements.
• Directors hold significant control and are local, possibly implying hands-on management and oversight.

4. Due Diligence Notes:

• Investigate nature and terms of long-term creditors—are these loans, related party debts, or other obligations? Assess repayment schedules and covenants.
• Review underlying asset valuations and whether fixed assets are tangible and realizable at stated amounts.
• Examine cash flow statements (not provided) to confirm operational cash generation and ability to service debt.
• Confirm absence of director disqualifications or related-party conflicts beyond stated control information.
• Understand business model and revenue generation plans given the “Activities of head offices” SIC classification and minimal employee base.