THE BOX SHAPE LIMITED
Executive Summary
The Box Shape Limited shows a high risk profile primarily due to its negative net assets and substantial long-term liabilities, which significantly exceed current assets. While regulatory filings are up to date, the company’s very limited scale of operations and financial deterioration raise concerns about its short- and medium-term viability. Further scrutiny of its liabilities and operational plans is recommended to clarify its sustainability.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
THE BOX SHAPE LIMITED - Analysis Report
Risk Rating: HIGH
The company exhibits significant solvency risk due to negative net assets of £14,485 as of July 2024, a dramatic deterioration from positive net assets of £384 in the prior year. The large amount of long-term creditors (£17,420) relative to very modest current assets and turnover indicates financial distress.Key Concerns:
- Negative Net Assets and Shareholders' Deficit: The company’s equity position has declined sharply, signaling potential insolvency issues.
- High Long-Term Liabilities: Creditors falling due after more than one year amount to £17,420, considerably exceeding current assets, which may strain future cash flows.
- Minimal Turnover and No Employees: With reported turnover of only £45,150 in 2023 and no employees, operational scale is very limited, raising sustainability questions.
- Positive Indicators:
- Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance.
- Sole Shareholder and Director Consistency: Control is centralized in one individual, potentially allowing for swift decision-making.
- Low Fixed Assets: Minimal fixed assets reduce risk of impairment or asset write-downs.
- Due Diligence Notes:
- Investigate the nature and terms of the £17,420 long-term liabilities to understand repayment obligations and creditor relations.
- Review cash flow statements or management accounts (not provided) to assess liquidity beyond balance sheet snapshots.
- Understand the business model and revenue drivers given low turnover and zero employees, to evaluate operational viability.
- Confirm whether the company has any contingent liabilities or off-balance sheet commitments.
- Assess the director’s plans for capital injection or restructuring to address the negative equity position.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company