SEARCH DOT COM LTD
Company number 07287312 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: SEARCH DOT COM LTD
1. Credit Opinion: DECLINE
Reasoning: This company is deeply insolvent and has been for multiple consecutive years. Net liabilities stand at £174,913 against share capital of just £1,000, with accumulated losses of £175,913. Cash has been entirely depleted (£0 as at November 2024), and the company has no employees. There is no visible revenue generation capacity, no cash reserves, and no asset base to support new credit facilities. The company is surviving solely on creditor forbearance — extending further credit would be imprudent.
The director has permitted the company to trade while insolvent for an extended period, which raises serious concerns about management stewardship and potential wrongful trading under the Insolvency Act 1986.
2. Financial Strength: Critically Weak
Balance Sheet Summary (November 2024):
| Item | £ |
|---|---|
| Fixed Assets | 0 (fully depreciated) |
| Current Assets | 8,798 (debtors only) |
| Cash at Bank | 0 |
| Current Liabilities | (147,182) |
| Long-term Liabilities | (36,529) |
| Net Liabilities | (174,913) |
| Shareholders' Funds | (175,913) |
Key Observations:
- Technical insolvency is entrenched. Net liabilities have deteriorated from £152,194 (2023) to £174,913 (2024), an increase of £22,719 in deficit.
- No tangible asset base. All fixed assets are fully depreciated. The only asset is £8,798 in "other debtors" — likely intercompany or related party balances of uncertain recoverability.
- Capital is eroded beyond recovery. Share capital of £1,000 against accumulated losses of £175,913 means the business has destroyed over 175 times its invested capital.
- Long-term trajectory is terminal. Net assets went from positive £154,560 (2019) to negative £174,913 (2024) — a swing of nearly £330,000 in five years.
3. Cash Flow Assessment: No Liquidity Whatsoever
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Cash | £0 | £3,471 |
| Current Ratio | 0.06:1 | 0.10:1 |
| Net Current Liabilities | (£138,384) | (£112,194) |
Key Observations:
- Zero cash balance. The company has no cash at bank and no overdraft facility to draw upon. Any payment obligation cannot be met from operating resources.
- Current liabilities of £147,182 are dominated by "other creditors" at £135,536 — likely intercompany balances owed to Lynch & Co Properties Ltd (the PSC). This suggests the parent entity is funding ongoing operations, but this is creditor debt, not equity.
- Bank borrowings of £47,529 (current £11,000 + long-term £36,529) represent a claim on a company with no means to service it.
- Working capital deficit of £138,384 means the company cannot meet its short-term obligations from current assets under any scenario.
- No employees. Average employee count dropped from 1 to NIL, indicating the business has ceased operational activity.
4. Monitoring Points
Should any existing exposure exist or related party considerations apply, the following require close monitoring:
| Metric | Current | Concern Threshold | Risk |
|---|---|---|---|
| Cash balance | £0 | Below £5,000 | CRITICAL — No liquidity buffer |
| Net liabilities | (£174,913) | Any negative | CRITICAL — Deepening insolvency |
| Net current liabilities | (£138,384) | Any negative | CRITICAL — Cannot meet short-term debts |
| Other creditors (related party) | £135,536 | Increasing | HIGH — Potential withdrawal risk if parent withdraws support |
| Employee count | 0 | Below 1 | HIGH — No operating capacity |
| Filing compliance | Current | Overdue | Monitor — director has filed on time |
Additional Risk Factors: - Related party dependency: Lynch & Co Properties Ltd controls >75% of shares. The "other creditors" balance likely represents funding from this entity. Any withdrawal of support would trigger immediate insolvency. - Wrongful trading risk: The director has allowed the company to trade while insolvent for several consecutive years. Under Section 214 of the Insolvency Act 1986, this creates personal liability exposure. - No revenue visibility: The P&L account is not filed (company has opted not to deliver it under Section 444(1)), but the deteriorating balance sheet and zero employees suggest negligible or no trading income. - Potential phoenix risk: Given the related party structure and business support services classification, there is a risk that business activities could migrate to another entity within the Lynch group, leaving this company as an empty shell with liabilities.