SMITH & TODD CONSTRUCTION MECHANICAL & ELECTRICAL LTD

Executive Summary

SMITH & TODD CONSTRUCTION MECHANICAL & ELECTRICAL LTD shows symptoms of complete operational and financial shutdown with zero cash and no trading since February 2022. The company’s financial health is critically compromised, reflected in a minimal equity base and lack of assets, signaling insolvency risk. Immediate formal action and compliance recovery are essential to prevent further financial and legal consequences.

SMITH & TODD CONSTRUCTION MECHANICAL & ELECTRICAL LTD - Analysis Report

Company Number: 14034260

Analysis Date: 2025-07-29 12:11 UTC

Financial Health Assessment for SMITH & TODD CONSTRUCTION MECHANICAL & ELECTRICAL LTD

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1. Financial Health Score: Grade F

Explanation:
This company is currently in a state of financial dormancy or near cessation of operations, reflecting severe distress. The score F indicates critical concern due to the absence of trading activity for over two years, minimal equity, and no operational cash inflows. The financial "vital signs" show no healthy indicators of an active business.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Trading Activity	None since Feb 2022	No revenue or operational income (critical symptom)
Cash at Bank	£0	Cash reserves fully depleted (danger sign)
Current Assets	£0	No short-term resources available (critical)
Current Liabilities	£0	No current liabilities recorded in 2024 (unusual, likely due to ceased activity)
Net Assets / Shareholders’ Funds	£2	Minimal equity, close to zero, indicating insolvency risk
Turnover	£0	No invoiced sales (business is dormant)
Employees	0	No workforce (business non-operational)
Overdue Filings	Confirmation Statement overdue	Compliance risk, possible governance issues

Note: The last filed accounts (2023) showed reasonable cash and net current assets (£17,950), but these have vanished in 2024, indicating complete operational halt and cash burn.

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3. Diagnosis

SMITH & TODD CONSTRUCTION MECHANICAL & ELECTRICAL LTD is effectively in a state of clinical death financially. The company ceased trading in February 2022 and has not resumed business activity. The 2024 accounts show zero current assets and cash, with shareholders’ funds reduced drastically from £17,950 to £2, signaling all financial resources have been exhausted.

The company has no employees, no turnover, and no operational cash flow — these are clear symptoms of terminal financial distress. The lack of trading means no revenue generation to support liabilities or sustain operations. The directors have acknowledged they do not intend to restart trading.

Furthermore, the overdue confirmation statement filing indicates governance and compliance issues, adding to the overall risk profile.

Underlying causes:

• No operational activity since early 2022
• Complete depletion of cash reserves
• No evident plan for recovery or restructuring
• Compliance neglect (overdue statutory filings)

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4. Recommendations

• Immediate formal review: Consider initiating formal insolvency procedures (e.g., liquidation) to protect directors and stakeholders from personal liability and to orderly wind down the company.
• Compliance catch-up: File all overdue confirmation statements and any outstanding statutory documents to avoid penalties and potential legal issues.
• Stakeholder communication: Inform shareholders and creditors of the company’s status transparently to manage expectations and legal responsibilities.
• Director action: Directors should seek professional advice on their fiduciary duties given the company’s non-trading status and financial depletion.
• Avoid further liabilities: Cease any operational expenditure or obligations that could worsen financial position.
• Consider dissolution: If no revival or sale prospects exist, a controlled dissolution to close the company may be the most prudent path.

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Executive Summary