SOTER PROFESSIONAL SERVICES LIMITED
Company number 07767411 · 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.
Risk Analysis: SOTER PROFESSIONAL SERVICES LIMITED (07767411)
1. Risk Rating: HIGH
The company is currently in Liquidation, which represents the most severe form of insolvency. This status alone warrants a HIGH risk rating regardless of other financial metrics. The registered address has been transferred to FRP Advisory Trading Limited, a prominent insolvency and restructuring practice, confirming formal insolvency proceedings are underway. Any investment consideration is effectively moot — the company is being wound up.
2. Key Concerns
Concern 1: Liquidation Status
The company's status is confirmed as "Liquidation." This means the business has failed or is being voluntarily closed, and a liquidator has been appointed to realise assets and distribute proceeds to creditors. The registered office at FRP Advisory (Derby House, 12 Winckley Square, Preston) is the operational base of the appointed insolvency practitioner, not the company's former trading address.
Concern 2: Severe Deterioration in Working Capital
Net current assets collapsed from £288,033 (May 2021) to just £76,703 (May 2022) — a 73% decline in a single year. Current liabilities grew by £262,515 (23.5%) while current assets only increased by £51,185 (3.6%). The current ratio deteriorated to approximately 1.06:1, leaving virtually no buffer. With £1,380,025 in current liabilities against only £266,767 in cash, the company was dangerously exposed to any disruption in debtor collections or cash inflows.
Concern 3: Overdue Accounts and Governance Gaps
Accounts for the period ending 31 May 2022 were due by 29 February 2024 and are marked as overdue. The last filed accounts were signed off by the director on 22 May 2023 — over a year after the year-end — which itself is a significant delay. The absence of more recent financial information, combined with the liquidation status, means stakeholders are operating with severely outdated data. There is no income statement filed (permitted under small company exemptions), limiting visibility into trading performance.
3. Positive Indicators
Historical Recovery Trajectory (2017–2021)
The company demonstrated a meaningful recovery from deeply negative net assets. From a position of -£310,735 in shareholders' funds (December 2015), the business climbed to positive net assets of £426,906 by May 2021. This suggests the underlying business model (insurance auxiliary services) had genuine commercial viability for a period.
Revenue Growth Inferred from Employee Expansion
Average employee count rose from 53 to 74 (a 40% increase) between 2021 and 2022, suggesting the company was scaling operations. This typically correlates with revenue growth, though without a profit & loss statement, profitability cannot be confirmed.
Tangible Asset Base
Fixed assets of £586,282 (including motor vehicles, plant & machinery, and computer equipment) provide some potential recovery value for creditors, though realisation in liquidation is typically at a discount to book value.
4. Due Diligence Notes
| Item | Details to Investigate |
|---|---|
| Type of Liquidation | Determine whether this is a Creditors' Voluntary Liquidation (CVL) or Compulsory Liquidation. A CVL suggests director-initiated closure; compulsory suggests creditor action. |
| Liquidator's Statement of Affairs | Obtain from FRP Advisory. This will show estimated realisable values vs. book values and the expected deficiency to creditors. |
| Speed Medical Examination Services Limited | The corporate PSC owning 25-50% should be investigated for financial health, related-party transactions, and whether it is also in distress. |
| Related Party Balances | The 2022 accounts note current financial instruments of £1,380,025. Determine how much is owed to connected parties vs. arms-length creditors. |
| Provisions of £145,810 | The nature of these provisions is unclear from filleted accounts. Understand whether these relate to warranties, litigation, or other obligations that may affect creditor priorities. |
| Debtor Quality | £935,530 in debtors represents 64% of current assets. Assess collectibility — especially critical in liquidation where trade debtors often prove partially irrecoverable. |
| Stock of £254,431 | New stock line in 2022 (nil in 2021). Understand what this comprises and its realisable value. Insurance auxiliary services typically don't carry physical stock, so this may represent work-in-progress or contracts. |
| Director Disqualification Risk | Investigate whether the liquidator has indicated any intent to pursue director conduct investigations under the Company Directors Disqualification Act 1986. |
| Preferential Creditor Claims | With 74 employees, there may be significant claims for unpaid wages, holiday pay, and redundancy — these rank as preferential debts ahead of unsecured creditors. |