RETICS & REPTILES LTD

Executive Summary

RETICS & REPTILES LTD presents a high solvency risk with negative net assets and no current assets to cover liabilities, indicating potential liquidity challenges. While the company complies with filing requirements and benefits from consolidated ownership control, further investigation into its financial operations and strategic plans is essential to assess ongoing viability.

RETICS & REPTILES LTD - Analysis Report

Company Number: 12952599

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: HIGH
   The company shows consistent negative net assets (shareholders’ funds of -£19,000 in 2023) indicating insolvency on a balance sheet basis. Current liabilities exceed current assets (both zero current assets reported) by a substantial margin. Such a position signals that the company is unable to meet its short-term obligations from available current assets.

2. Key Concerns:

• Solvency Risk: Negative net equity for multiple years suggests the company is technically insolvent and dependent on external funding or director support to continue operations.
• Liquidity Concerns: No current assets to cover current liabilities (which remain around £19-22k), indicating potential cash flow difficulties.
• Operational Stability: Reduction in average employee count from 7 in 2022 to 5 in 2023 may indicate downsizing or operational challenges.

3. Positive Indicators:

• The company remains active and has met all filing deadlines, showing compliance with statutory requirements.
• The controlling director, Mr. Mark Cross, maintains full ownership and control, which may facilitate swift decision-making and capital injections if necessary.
• Fixed assets have increased modestly from £1,800 in 2022 to £3,000 in 2023, indicating some investment in tangible resources.

4. Due Diligence Notes:

• Clarify nature and timing of current liabilities—are these trade payables, loans, or director loans? Understanding maturity profiles is critical.
• Investigate cash flow statements or bank reconciliations (not provided) to assess liquidity management and potential funding sources.
• Review business model viability given continued losses and negative equity; assess revenue trends and cost control measures.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in micro-entity accounts.
• Confirm director’s plans for addressing insolvency risks, including any capital injections or restructuring.