SERL SEASHELLS LIMITED

Executive Summary

SERL SEASHELLS LIMITED exhibits high financial risk due to negative net assets and significant long-term liabilities exceeding current assets. While regulatory filings are current and operational investment is evident, liquidity and solvency concerns warrant further detailed financial review. Investors should seek additional financial and operational data before commitment.

SERL SEASHELLS LIMITED - Analysis Report

Company Number: 13109689

Analysis Date: 2025-07-20 14:01 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and shareholders’ funds in the most recent financial year, indicating a solvency risk. The presence of long-term creditors exceeding current assets signals financial distress.

2. Key Concerns:

• Solvency Risk: The net assets declined from positive £34,959 in 2024 to negative £21,825 in 2025, with shareholders’ funds also negative at -£21,825, highlighting a deteriorating financial position.
• Long-Term Liabilities: The company reports £51,295 in creditors due after more than one year, which exceeds current assets and net current assets, suggesting potential difficulty in meeting long-term obligations.
• Limited Cash Reserves: Although cash increased to £6,271 in 2025 from £100 previously, this remains low relative to liabilities, indicating liquidity constraints.

3. Positive Indicators:

• Compliance: All filings including accounts and confirmation statements are up to date with no overdue notices, reflecting good regulatory compliance.
• Business Activity Growth: Tangible fixed assets increased markedly to £23,875 in 2025 from £0 in the prior year, indicating investment in operations.
• Employee Growth: Average employees increased from 1 to 8, suggesting operational expansion.

4. Due Diligence Notes:

• Investigate the nature and terms of the £51,295 long-term creditors and whether these represent loans, leases, or other obligations, and their repayment schedules.
• Review management accounts and cash flow forecasts to assess ongoing liquidity and operational cash generation capability.
• Confirm the absence of director conduct issues or disqualifications, given sole control by Mrs. Michelle Earp.
• Clarify the company’s revenue streams and profitability trends not disclosed here to assess sustainability of operations.
• Examine any contingent liabilities or off-balance sheet obligations.