THIS FACTOR LTD

Executive Summary

THIS FACTOR LTD displays a high financial risk profile characterized by negative equity, absence of revenue, and creditor liabilities exceeding current assets. While it remains compliant with regulatory filings, the company’s operational inactivity and solvency concerns present significant red flags for investors. Further due diligence on creditor arrangements and future business plans is essential before considering investment exposure.

THIS FACTOR LTD - Analysis Report

Company Number: 13262643

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: HIGH
   This Factor Ltd exhibits a high risk profile primarily due to its ongoing negative net assets, zero turnover, and persistent liabilities exceeding current assets. The company shows no trading activity or revenue generation since incorporation, which raises serious concerns about its operational viability and ability to meet financial obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets were negative at £638 as of 31 March 2024, worsening from previous years, indicating accumulated losses or liabilities not covered by assets or equity.
• Zero Turnover Over Multiple Years: Despite being active for over three years, the company reported no turnover or any business income, suggesting it is not generating revenue to sustain operations or repay liabilities.
• Significant Long-Term Creditors: Creditors falling due after more than one year are consistently recorded at £1,500, which surpasses the current assets and implies potential solvency issues if these debts are not settled or renegotiated.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, showing adherence to regulatory requirements without overdue penalties.
• Micro Entity Filing Status: As a micro entity, the company benefits from simplified filing requirements, potentially lowering administrative burden and costs.
• Single Director Stability: Although turnover of directors occurred early on, the current director has maintained tenure throughout the last reporting period, providing some continuity in governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1,500 long-term creditor balance to understand repayment schedules, creditor identity, and any contingent liabilities attached.
• Clarify the company’s business plan or strategy given zero turnover for multiple years and determine if there are prospects or contracts that might generate income going forward.
• Review cash flow statements or bank account activity for liquidity insights, as the balance sheet alone shows limited current assets (£862) and no fixed assets.
• Assess the reasons behind the lack of trading—whether due to market conditions, management decisions, or dormant status despite active registration.
• Confirm no director disqualifications or governance issues exist beyond the data provided, especially given early turnover of directors in 2021-2022.