RED LOBSTER DEVELOPMENTS LTD

Executive Summary

Red Lobster Developments Ltd is a newly incorporated construction-related private limited company facing liquidity and solvency challenges at its first year-end, reflected in negative net assets and working capital deficits. While compliance with filing obligations is current and ownership is concentrated, the lack of operational scale and absence of revenue data represent significant risks. Further investigation into trading status and financial plans is essential before considering investment.

RED LOBSTER DEVELOPMENTS LTD - Analysis Report

Company Number: 14673530

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets and net current liabilities at its first year-end, indicating insolvency on a balance sheet basis. The absence of employees and limited fixed assets further raise concerns about operational capacity and cash flow generation.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds stand at -£473, reflecting accumulated losses and potential balance sheet insolvency.
• Negative Working Capital: Current liabilities exceed current assets by £1,973, implying immediate liquidity pressure to meet short-term obligations.
• Limited Operational Activity: No employees reported and minimal fixed assets (£1,500) suggest the business may not yet be fully operational or generating revenue.

3. Positive Indicators:

• Compliance: The company is up to date with statutory filings, including accounts and confirmation statements, with no overdue returns.
• Control Concentration: A single director and 75-100% shareholder control may facilitate swift decision-making.
• Clear Industry Focus: Registered SIC codes align with building completion and domestic construction, indicating a defined market sector.

4. Due Diligence Notes:

• Investigate Revenue and Cash Flow: Absence of profit and loss account limits visibility on operational performance and cash generation. Confirm if trading has commenced and assess revenue streams.
• Review Director’s Plans: Understand the business model, capitalization plans, and timelines for operational ramp-up from the controlling director.
• Monitor Creditor Relationships: Clarify the nature of current liabilities (£1,973), payment terms, and any risk of creditor enforcement actions.