SCRAP.TRAP.REMOVALS LTD

Executive Summary

SCRAP.TRAP.REMOVALS LTD shows high financial risk due to negative net assets and working capital at its first year-end, indicating potential solvency and liquidity difficulties. While compliance with filing deadlines is maintained, operational capacity appears limited with no employees and minimal assets. Further investigation into liabilities and business viability is recommended before considering investment.

SCRAP.TRAP.REMOVALS LTD - Analysis Report

Company Number: 14444815

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency risk, with negative net current assets (£-6,674) and net liabilities (£-5,674) at its first reporting date. This indicates an inability to meet short-term obligations, which is a critical red flag for financial stability.

2. Key Concerns:

• Negative working capital and net liabilities suggest immediate liquidity problems and potential inability to pay creditors.
• No employees reported, implying limited operational capacity and possible challenges in generating sufficient revenue to improve financial position.
• Very limited asset base (£1,000 fixed assets and £562 current assets) compared to liabilities, indicating minimal financial buffer.

3. Positive Indicators:

• Company status is active with no overdue filings, reflecting compliance with statutory requirements to date.
• Single director with full ownership and control may streamline decision-making and facilitate quick responses to financial distress.
• Micro-entity filing status reduces compliance burden, which may help the company conserve resources during early stages.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess any imminent payment pressures or creditor actions.
• Review cash flow forecasts and business model viability given no employees and minimal asset base.
• Confirm absence of contingent liabilities or related-party transactions that may increase financial risk.
• Evaluate management plans for addressing negative equity and improving working capital position.