SHELL MANAGEMENT LTD

Executive Summary

Shell Management Ltd exhibits high financial risk due to persistent negative net assets and current liabilities exceeding current assets, indicating liquidity and solvency challenges. While statutory filings are current and the company remains active, recent director resignations and continued negative equity warrant careful scrutiny. Further investigation into operational cash flows and governance is recommended to assess long-term viability.

SHELL MANAGEMENT LTD - Analysis Report

Company Number: 13841769

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks, with negative net assets and shareholders’ funds consistently over the past three financial years. Current liabilities exceed current assets, indicating liquidity constraints. The absence of profit and ongoing negative equity raises concerns about operational sustainability.

2. Key Concerns:

• Negative Net Assets: The company’s net assets and shareholders’ funds are negative (£-2,569 as of 2024), which suggests the company is technically insolvent on a balance sheet basis.
• Liquidity Shortfall: Current liabilities (£3,885) exceed current assets (£3,026) as of the latest accounts, indicating potential cash flow difficulties in meeting short-term obligations.
• Declining Director Stability: Two of the three original directors have resigned recently (one in January 2024, another in January 2025), which may imply governance or operational instability.

3. Positive Indicators:

• Timely Filings: The company’s accounts and confirmation statements are up to date and not overdue, demonstrating compliance with statutory filing requirements.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting obligations, reducing compliance complexity and costs.
• Continued Operations: The company remains active with two directors currently appointed, suggesting ongoing business activity.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and any recent trading results to assess if negative equity is being addressed through operational improvements or capital injections.
• Review the reasons behind director resignations to understand potential governance or strategic issues.
• Confirm if there are any related party transactions or loans that might impact solvency.
• Assess the business model’s viability given its SIC classification (management of real estate on a fee or contract basis) and whether contractual revenues are sufficient to cover liabilities.
• Check for any contingent liabilities or pending legal actions that could exacerbate financial risks.