SUFFOLK ASBESTOS LTD

Executive Summary

Suffolk Asbestos Ltd shows significant financial distress with negative net assets and liquidity shortfalls as of the latest accounts. Despite current compliance with filing requirements, the company’s solvency and operational sustainability are concerning due to increased liabilities and reduced equity. Further investigation into creditor terms and cash flow is essential before considering investment.

SUFFOLK ASBESTOS LTD - Analysis Report

Company Number: 14281708

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk as evidenced by negative net assets (£-4,247) and net liabilities as of the last financial year end (2024-04-05). The presence of long-term creditors (£6,790) exceeding total assets less current liabilities further compounds the financial distress. Negative working capital (net current liabilities of £-4,582) signals liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: A deterioration from positive net assets (£9,612 in 2023) to a large negative figure (£-4,247 in 2024) indicates accumulated losses or increased liabilities eroding equity.
• High Long-Term Debt: Creditors falling due after more than one year amounting to £6,790 with no corresponding increase in assets suggest potential over-leverage and repayment risk.
• Liquidity Pressure: Current liabilities (£7,378) exceed current assets (£2,796), indicating difficulty in meeting short-term obligations and possible cash flow issues.

3. Positive Indicators:

• Current Compliance and Filing Status: The company is active with up-to-date accounts and confirmation statement filings, which supports regulatory compliance and governance discipline.
• Low Employee Base: With only 2 employees, the company may have a lower fixed cost base, potentially aiding operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand repayment schedules and covenants.
• Examine the reasons for the shift from positive to negative net assets within one year, including any extraordinary expenses or write-downs.
• Review cash flow statements (if available) or bank statements to assess actual liquidity and operational cash generation.
• Confirm whether there are any contingent liabilities or pending legal actions related to asbestos remediation that could further impact financial stability.
• Assess the business model viability given the financial deterioration and micro-entity status.