Risk Analysis: SCIBOTICS LIMITED

1. Risk Rating: LOW

Justification: This is a dormant shell company with negligible financial exposure. The SIC classification (99999 - Dormant Company) confirms no active trading operations. While the company carries persistent negative net assets, the absolute values are de minimis (£172), and there are no signs of financial distress, creditor pressure, or regulatory non-compliance. The risk profile is characteristic of a company maintained for administrative purposes rather than commercial activity.

2. Key Concerns

Concern 1: Persistent Negative Net Assets The company has maintained negative net assets continuously from at least 2017 through 2025. The latest filed accounts confirm total net liabilities of £172. While immaterial in absolute terms, this represents a technical insolvency position that has persisted for approximately 8 years. The company is balance-sheet insolvent, albeit trivially.

Concern 2: Concentrated Control and Single-Director Governance Mr. Timothy Peter Mitchell holds over 75% of shares, over 75% of voting rights, and the right to appoint and remove directors. He is also the sole director. This concentration creates complete dependency on one individual for all governance and decision-making, with no checks or balances.

Concern 3: Dormant Status Limits Transparency As a dormant micro-entity, the company files only the most abbreviated accounts permitted by law. There is no profit & loss statement, no cash flow statement, and minimal balance sheet detail. This severely limits the ability to assess any underlying activity or relationships the company may have.

3. Positive Indicators

• Regulatory Compliance: All filings are current. Accounts made up to 30 June 2025 were approved and signed on 28 February 2026, well within deadlines. The confirmation statement is also up to date with no overdue filings.
• Longevity: The company has been incorporated since July 2008—over 16 years—suggesting stability in its current form. There are no insolvency proceedings, disqualification orders, or adverse regulatory actions recorded.
• Stable Financial Position: The financial figures have remained essentially flat for years (moving from £-173 to £-172), indicating no deterioration and no accumulation of material liabilities. The position is static rather than deteriorating.
• No Employees: Zero employees eliminates payroll obligations and related operational risks.

4. Due Diligence Notes

1. Purpose of the Entity: Investigate why this dormant company is being maintained. Dormant companies are often held for intellectual property, future projects, or as part of a group structure. Understanding the strategic rationale is essential before any investment decision.

2. Relationships with Other Entities: Determine whether SCIBOTICS LIMITED has connections to other companies controlled by Mr. Mitchell. A dormant company may have intercompany balances or guarantee obligations that do not appear on the micro-entity balance sheet but could represent contingent liabilities.

3. Source of Creditor Balance: The £172 creditor falling due within one year should be identified. Given the dormant status and lack of trading, this likely represents a small ongoing obligation (possibly the director's loan or an accrued professional fee). Understanding who this is owed to and on what terms would clarify the true position.

4. Director's Other Interests: Given Mr. Mitchell's complete control, a comprehensive review of his other directorships and business interests would provide context on whether this entity is part of a broader structure and whether any associated entities carry material risk.

5. Future Intentions: Clarify whether there are plans to reactivate the company. The name "SCIBOTICS" suggests a technology or robotics venture, which may indicate dormant intellectual property or pending commercialisation. Any such assets would not be visible in the current micro-entity accounts.