STEDAN LOGISTIC LTD

Executive Summary

Stedan Logistic Ltd demonstrates high financial risk due to persistent negative net assets, significant working capital deficits, and minimal equity capital. While regulatory compliance is up to date and management stable, the company’s current financial position raises serious concerns regarding its ability to meet obligations and sustain operations without external support. Further investigation into funding sources and operational viability is recommended before considering investment.

STEDAN LOGISTIC LTD - Analysis Report

Company Number: 12937692

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with persistent and increasing net liabilities, negative net current assets, and negative shareholders’ funds over the last three years. The scale of the negative equity and working capital deficiency indicates an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The net liabilities increased markedly from -£37,561 in 2022 to -£55,753 in 2023, indicating worsening financial health and erosion of capital.
• Severe Working Capital Deficit: Current liabilities (£70,801) substantially exceed current assets (£9,373), resulting in a net current liability position of -£61,428, raising liquidity concerns and suggesting difficulty in meeting short-term debts.
• Lack of Financial Cushion and Minimal Share Capital: Share capital is nominal (£2.00), providing no buffer against losses and indicating limited equity investment to support operations or absorb shocks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed accounts and confirmation statements on time, indicating adherence to regulatory requirements and governance norms.
• Stable Director Appointment: Same director since incorporation, which may suggest management continuity and stable leadership.
• Small Scale Operations: Micro-entity reporting and only two employees imply a lean operational structure potentially allowing for flexible cost management.

4. Due Diligence Notes:

• Investigate the company’s business model viability given sustained losses and negative equity.
• Clarify sources of funding or financing arrangements that may support liquidity despite negative net current assets.
• Review any contingent liabilities or off-balance sheet obligations not reflected in the financials.
• Assess trading performance trends, revenue generation, and cash flow statements (not available here) to understand operational sustainability.
• Confirm absence of director disqualifications or legal proceedings that may impact governance or operational stability.