RED ALERT DATA AND TELECOMS LIMITED

Executive Summary

Red Alert Data And Telecoms Limited shows significant solvency and liquidity concerns with worsening negative net assets and working capital deficits over its first two years. While regulatory compliance is maintained, the small scale and deteriorating financial position raise questions about operational sustainability. Further investigation into liabilities, cash flows, and business strategy is warranted before considering investment.

RED ALERT DATA AND TELECOMS LIMITED - Analysis Report

Company Number: 14336877

Analysis Date: 2025-07-19 12:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities worsening from approximately -£19.4k in 2023 to -£26.1k in 2024. Negative net assets and continual erosion of shareholder funds indicate an inability to meet obligations from current asset levels.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net current liabilities exceed current assets by over £26,000, demonstrating liquidity strain.
• Deteriorating Financial Position: Despite being a micro-entity, the loss of fixed assets and worsening net liabilities within two years of incorporation raises questions on operational viability.
• Limited Operational Scale: With an average of one employee and minimal asset base, the business may lack sufficient scale or cash flow to sustain operations or service liabilities.

3. Positive Indicators:

• Compliance and Filing: All statutory filings including accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Active Website and Industry Classification: Presence of a functioning website and defined SIC codes for telecommunications suggests operational activity aligned with stated business purpose.
• Established Control Structure: Shareholding and director roles are clearly documented, with no evidence of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand creditor profile and payment terms.
• Review cash flow statements or management accounts if available to assess operational cash generation and immediate liquidity.
• Clarify business model and revenue generation plans given persistent losses and asset depletion.
• Assess any contingent liabilities or off-balance sheet exposures not captured in micro-entity accounts.
• Confirm the reasons behind director resignation in June 2023 and whether it impacted financial stability.