XELLE LTD

Executive Summary

XELLE LTD exhibits significant financial strain with negative net assets and current liabilities exceeding current assets as of the latest accounts. While regulatory filings are current and ownership is concentrated, the company's liquidity and operational viability are questionable. Further analysis of cash flows and business activity is essential before considering investment risk.

XELLE LTD - Analysis Report

Company Number: 13060332

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   The company’s latest financials show a significant deterioration, with net assets turning negative (£-36 in 2023 from £872 in 2022), indicating solvency concerns. Negative net current assets and total net liabilities suggest the company may struggle to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Net liabilities and negative net current assets in 2023 point to potential inability to cover debts as they fall due.
• Liquidity Concerns: Current liabilities (£1,413) exceed current assets (£329) substantially, indicating cash flow constraints.
• Operational Stability: Absence of employees and declining asset base raise questions about ongoing business activity and sustainability.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements; filings are up to date, indicating good governance in terms of regulatory compliance.
• Ownership: Single controlling shareholder with full voting rights, potentially enabling swift decision-making.
• Industry: Operating in IT consultancy and commercial building construction, sectors with potential for revenue generation if managed well.

4. Due Diligence Notes:

• Investigate causes behind the sharp decline in current assets and net assets between 2022 and 2023.
• Review cash flow statements and creditor aging reports to assess immediate liquidity pressures.
• Confirm whether the company is actively trading given zero employees and small asset base.
• Examine director’s plans or any external financing arrangements to address financial deterioration.
• Verify if there are contingent liabilities or off-balance sheet commitments impacting solvency.