THE COMPOSITES SHOP LTD

Executive Summary

The Composites Shop Ltd is a recently incorporated dormant company with negative net assets and current liabilities exceeding current assets, indicating potential solvency concerns if trading commences. While it maintains compliance with statutory filings and has clear ownership, the financial position presents risk requiring further investigation into liabilities and future business plans.

THE COMPOSITES SHOP LTD - Analysis Report

Company Number: 14527883

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current assets despite being dormant, indicating potential insolvency risk if it were to commence trading. The very limited asset base (£100) against current liabilities of £1,200 is a significant red flag.

2. Key Concerns:

• Negative Net Assets and Liquidity Deficit: The reported net assets and net current assets are both negative (£-1,100), suggesting the company currently cannot meet its short-term liabilities.
• Dormant Status with Financial Deficit: Although dormant, the company’s balance sheet shows liabilities exceeding assets, which is unusual and may signal unresolved obligations or accounting issues.
• Single Director and PSC Concentration: Control is fully concentrated in one individual, which may increase governance risk due to lack of oversight or checks and balances.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statements, with no overdue filings, which demonstrates good administrative compliance.
• Micro-Entity Filing and Dormant Status: The company benefits from simplified filing requirements, reducing compliance burden and costs during its dormant phase.
• Clear Ownership and Control: The 100% ownership and voting rights by the director provides clarity on decision-making authority.

4. Due Diligence Notes:

• Investigate the nature and origin of the current liabilities (£1,200) given the dormant status and minimal assets.
• Clarify the plans for activating trading and how the company intends to address the negative equity position.
• Assess the financial capacity and creditworthiness of the sole director since the company’s financial position is heavily reliant on her.
• Confirm no undisclosed contingent liabilities or related party transactions that may affect solvency once active.