TREADSTONE GRANITE & QUARTZ LTD

Executive Summary

Treadstone Granite & Quartz Ltd is a recently incorporated micro-entity exhibiting solvency and liquidity risks evidenced by net liabilities and negative working capital at its first year end. While regulatory compliance is satisfactory and ownership structure stable, the absence of operational history and financial deficits highlight significant risk to short-term financial stability. Further due diligence is recommended to evaluate the company’s plans for addressing these challenges and sustaining operations.

TREADSTONE GRANITE & QUARTZ LTD - Analysis Report

Company Number: 15163920

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: HIGH
   Justification: The company, incorporated less than one year ago, presents negative net assets and shareholders’ funds of approximately £5,530, with current liabilities exceeding current assets by £5,530. This indicates insolvency at the balance sheet date and raises immediate concerns about the ability to meet short-term obligations.

2. Key Concerns:

• Negative working capital: Current liabilities (£10,694) significantly exceed current assets (£5,164), indicating potential liquidity constraints.
• Negative net assets/shareholders’ funds: The company is effectively insolvent on a balance sheet basis with net liabilities of £5,530.
• Early stage of operation with limited financial history: Incorporated in September 2023, there is a lack of historical performance data to assess operational sustainability.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statement) are up to date with no overdue notices, signaling good governance and regulatory compliance thus far.
• Clear ownership and management: Two directors each hold 25-50% share and voting control, suggesting a stable ownership structure.
• Small scale operations consistent with micro-entity status: Limited staff (2 employees) and modest stock levels may imply controlled overheads.

4. Due Diligence Notes:

• Investigate the company’s business plan and cash flow forecasts to understand how it plans to address current insolvency and fund ongoing operations.
• Review supplier and creditor arrangements to assess risk of enforcement actions or demands for payment given negative working capital.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Obtain management commentary on initial trading results and prospects for scaling revenue and profitability.
• Verify if there has been any external funding or shareholder loans beyond the reported share capital of £100.