ROYBIZ HOSPITALITY LIMITED

Executive Summary

ROYBIZ HOSPITALITY LIMITED shows significant financial distress as of 2023 with large negative net assets and working capital deficits. The 2024 dormant accounts suggest the company may have ceased trading or paused operations, raising concerns about its sustainability. While regulatory filings are current, the financial and governance indicators warrant thorough due diligence before considering investment.

ROYBIZ HOSPITALITY LIMITED - Analysis Report

Company Number: 14315042

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to its significant negative net assets and working capital position as at the end of 2023, indicating solvency and liquidity challenges. The 2024 accounts filed are dormant accounts, suggesting no trading activity during that period, which raises concerns about operational sustainability.

2. Key Concerns:

• Severe negative net assets and working capital at 2023 year-end: The company reported net assets of -£166,470 and net current assets of -£171,985, signaling that current liabilities substantially exceed current assets and equity, putting the company at risk of insolvency.
• Dormant status in 2024 accounts despite negative prior year financials: The filing of dormant accounts for 2024, while the previous year showed severe losses, indicates a cessation of trading or operational activity, which may be a red flag for business viability and going concern assumptions.
• High director turnover and changes in significant control: Several directors resigned in early 2024, with new appointments noted, which could reflect governance instability or strategic uncertainty.

3. Positive Indicators:

• Current filing and compliance status is up to date: Both annual accounts and confirmation statements are filed on time, indicating adherence to basic regulatory requirements.
• Small share capital structure limits shareholder exposure: With only £101 share capital, financial exposure by shareholders is minimal.
• Presence of multiple PSCs with clear control structure: Control details are transparent, which aids governance oversight.

4. Due Diligence Notes:

• Investigate the reason behind the negative net assets and liabilities exceeding current assets at 2023 year-end and assess any related party transactions or contingent liabilities.
• Clarify the operational status during 2024 given the dormant accounts filing, including whether the company has ceased trading or is restructuring.
• Review the circumstances surrounding director resignations and new appointments to understand any governance or financial distress implications.
• Obtain detailed cash flow statements and management accounts to evaluate liquidity trends beyond the snapshot provided.
• Confirm if there are any outstanding creditor pressures, legal actions, or pending insolvency proceedings given the financial distress indicators.