TERRA CORE SYSTEMS LTD

Executive Summary

Terra Core Systems Ltd is a newly incorporated micro-entity showing a negative net asset position and current liabilities exceeding current assets, posing immediate solvency and liquidity risks. While the company meets regulatory filing requirements and has directors with relevant industry experience, limited financial history and lack of audit reduce transparency. Further investigation into cash flow and operational plans is essential before considering investment.

TERRA CORE SYSTEMS LTD - Analysis Report

Company Number: SC784029

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-212) with current liabilities exceeding current assets, indicating immediate solvency and liquidity concerns. The micro-entity status with minimal financial history and recent incorporation further limits assessment confidence.

2. Key Concerns:

• Negative net current assets (-£212) suggest potential difficulty meeting short-term obligations.
• Very limited operating history (incorporated Sep 2023) restricts ability to evaluate operational sustainability.
• Minimal financial disclosures and unaudited accounts reduce transparency and increase uncertainty.

3. Positive Indicators:

• Compliance with filing deadlines for accounts and confirmation statements indicates good regulatory adherence.
• Directors appear qualified with engineering backgrounds, relevant to the SIC-designated activities.
• Shareholder control structure is clear, with no indication of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate underlying causes of negative net assets — whether initial startup losses or accounting timing issues.
• Review cash flow projections and funding sources to assess short-term liquidity.
• Clarify business plan and client pipeline to evaluate future revenue potential and operational viability.
• Confirm the relationship and terms with KW Business Services Ltd, as the registered office and accountant provider, to understand cost structure or potential related-party transactions.