TARGET NET ZERO LIMITED

Executive Summary

Target Net Zero Limited is a recently incorporated micro-entity with a negative net asset position and working capital deficit, signaling high solvency and liquidity risk. While compliance with statutory filings is current and governance appears transparent, the company’s financial instability and lack of operational history pose significant concerns. Detailed due diligence on liabilities and business viability is recommended prior to investment consideration.

TARGET NET ZERO LIMITED - Analysis Report

Company Number: 15127274

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-17,982) and net current liabilities, indicating insolvency risk. Being newly incorporated with only one financial year of data, the absence of profitability or positive equity raises significant concerns about financial stability and ability to meet obligations.

2. Key Concerns:

• Negative working capital: Current liabilities (£32,414) exceed current assets (£14,432), suggesting liquidity constraints and potential cash flow issues.
• Net liabilities: Total net assets and shareholders' funds are negative at £-17,982, indicating the company’s liabilities surpass its assets.
• Early-stage company without profit data: Incorporated in September 2023, limited operating history means revenue generation and operational sustainability remain unproven.

3. Positive Indicators:

• Compliance with filing deadlines: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Small team: Average employees of 2 reduces fixed overheads and may support lean operations.
• Clear ownership and management: Director and person with significant control are identified with no negative records noted, supporting transparency.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities to understand short-term repayment risks.
• Assess the company’s business plan, revenue model, and cash flow forecasts given the negative equity and working capital deficit.
• Review any intercompany loans, director loans, or related party transactions that may affect financial stability.
• Confirm the director’s experience and track record in this industry sector (building completion and finishing).
• Monitor subsequent filings and performance for signs of improvement or worsening financial position.