REACT CONTRACTING LTD

Executive Summary

React Contracting Ltd is a dormant private limited company with negative net assets and current liabilities exceeding current assets, indicating financial distress if it were to trade. While filings are current and ownership is stable, the lack of operational activity and solvency concerns present a high risk profile. Further investigation into liabilities and future plans is recommended before considering investment.

REACT CONTRACTING LTD - Analysis Report

Company Number: 13482664

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   Justification: The company is classified as dormant and shows consistent negative net assets (£-3,129) with current liabilities exceeding current assets, indicating a solvency concern. The absence of trading or revenue data alongside negative shareholders’ funds raises significant financial stability risks.

2. Key Concerns:

• Negative Net Assets: The company’s balance sheet shows net liabilities of £3,129, which implies insolvency from an accounting perspective.
• Dormant Status with Liabilities: Although the company is dormant, it carries current liabilities (£14,725) that exceed its liquid assets (cash and debtors total £10,529), indicating potential liquidity issues if the company were to trade or be required to settle debts.
• Limited Operational Activity: The company is classified as dormant with no turnover disclosed, signaling no active business operations or revenue generation, which questions sustainability.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, with no overdue returns or accounts.
• Low Fixed Asset Base: The company’s fixed assets are minimal (£1,067), reducing risk of asset impairment or depreciation impacting solvency further.
• Controlled Ownership: Both directors are also significant shareholders with equal control, which may facilitate swift decision-making if operational changes are needed.

4. Due Diligence Notes:

• Confirm the nature and timing of the company’s dormant status and any plans for activation or winding down.
• Investigate the composition and maturity of current liabilities to assess imminent cash outflows and creditor pressure.
• Review director intentions and any related party transactions given the directors’ dual roles and the company’s financial position.
• Validate the absence of trading activity and verify any contingent liabilities or off-balance sheet obligations.
• Assess the long-term strategic outlook and any plans to restore profitability or capital injection.