SELECT SOURCE LDN LTD

Executive Summary

SELECT SOURCE LDN LTD presents a high risk from an investment perspective due to its minimal net assets, low turnover, and lack of employees, which collectively suggest limited operational activity and financial resilience. However, the company maintains good compliance with filing requirements and stable ownership. Further due diligence is necessary to clarify the company’s business model, cash flow position, and potential liabilities before considering investment.

SELECT SOURCE LDN LTD - Analysis Report

Company Number: 13099897

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: HIGH
   Justification: The company shows extremely minimal net assets (£1) and very low turnover (£40,858 in 2023), with no employees. The financials suggest a nominal operational scale and negligible working capital. This raises concerns about the company’s ability to meet liabilities or sustain business operations.

2. Key Concerns:

• Solvency and Capitalization: Net assets and shareholders’ funds remain at £1 over multiple years, indicating no retained earnings or buffer against liabilities.
• Revenue and Profitability: Low turnover and marginal profit (£4,239 in 2023) reflect limited business activity and potentially insufficient cash generation.
• Operational Scale and Sustainability: No employees and minimal financial activity hint at a company that may not be actively trading or lacks scalability.

3. Positive Indicators:

• Compliance: The company is up to date with filing annual accounts and confirmation statements, showing adherence to regulatory requirements.
• Stable Ownership and Control: A single director and person with significant control suggest clear governance without apparent management changes or conflicts.
• No Overdue Filings: Financial statements and returns are current, reducing risk of penalties or administrative actions from Companies House.

4. Due Diligence Notes:

• Verify the nature and extent of business operations given the low turnover and zero staff.
• Investigate the company's cash flow status and ability to meet short-term obligations despite minimal net assets.
• Review contractual obligations or off-balance-sheet liabilities that may not be apparent from accounts.
• Confirm if the company is a holding entity or dormant trading vehicle which could explain minimal financial activity.