Financial Health Assessment: 275 FOUNDATION LTD

Companies House No: 15801606
Status: Active – Proposal to Strike off
Sector: Licensed restaurants (SIC 56101)
Assessment Date: Based on latest public records

Financial Health Score: F — Critical / Emergency

This grade reflects the absence of filed financial statements combined with active strike-off proceedings. The company has not submitted its first annual accounts, which are now overdue, and the registrar has proposed that the company be struck off the register. In medical terms, this patient is in the emergency room with a "do not resuscitate" notice already drafted.

1. Key Vital Signs

2. Symptoms Analysis

🚨 Symptom 1: Overdue Accounts

The company was incorporated on 25 June 2024. Its first accounts were due by 25 March 2026 and are now overdue. This is the financial equivalent of a patient missing critical lab appointments — we cannot see the blood work, so we cannot confirm whether the business is solvent, profitable, or even trading.

🚨 Symptom 2: Proposal to Strike Off

This is the most severe symptom. A proposal to strike off means Companies House has reasonable grounds to believe the company is no longer carrying on business or trading. This can happen due to: - Failure to file accounts on time - Evidence that the company has no assets or activity - A director applying for voluntary strike-off

Either way, the company is one step away from being dissolved.

🚨 Symptom 3: High-Risk Sector

Licensed restaurants (SIC 56101) are among the highest-failure businesses in the UK. Thin margins, high fixed costs, seasonal cash flow, and changing consumer habits create chronic vulnerability. Without accounts, we cannot see whether the business is managing this risk or succumbing to it.

🚨 Symptom 4: Single Director and Concentrated Ownership

One director and one PSC owning over 75% means no independent checks and balances. If that individual becomes ill, unavailable, or makes a poor decision, there is no counterweight. This is a governance weakness even in a small company.

🚨 Symptom 5: No Financial Data at All

No accounts filed since incorporation means we cannot calculate: - Gross profit margin - Net profit margin - Current ratio - Gearing - Break-even position

This is not "no news is good news" — it is no news is bad news when combined with strike-off action.

3. Diagnosis

Primary Diagnosis: Acute Regulatory and Structural Distress

The company is exhibiting end-stage financial and administrative failure symptoms: - Failure to file statutory accounts - Active proposal for strike-off - No public financial history to demonstrate viability

This is consistent with a company that is either dormant, abandoned, or insolvent but not formally wound up. The absence of a liquidation or administration order suggests the directors have not engaged with formal insolvency processes — but the strike-off proposal indicates the registrar has taken action.

Secondary Diagnosis: Governance Anaemia A single director-owner with complete control, operating in a high-risk sector, with no visible financial reporting, presents a classic profile for: - Creditor issues - Tax arrears - Unpaid suppliers - Potential wrongful trading if liabilities continued while insolvent

4. Prognosis

Without Intervention

• Within 3–6 months: The company will likely be struck off the register.
• Any assets held in the company's name (bank balances, equipment, leasehold interests) will pass to the Crown as bona vacantia.
• The director may face personal liability for any debts incurred after the point at which they knew or should have known the company could not pay its debts.
• The director's credit file and future ability to act as a director could be damaged.

With Immediate Action

• If the company is genuinely trading, filing overdue accounts and engaging with Companies House could stop the strike-off and restore compliance.
• If the company is dormant or not trading, a voluntary strike-off application would be a cleaner exit than being compulsorily struck off.
• If the company is insolvent, director's voluntary liquidation (CVL) may protect creditors and the director from personal claims.

5. Recommendations

🔴 Immediate (within 7 days)

1. File the overdue accounts immediately.
   Use a licensed accountant or file online if the company qualifies as micro or dormant. This is the single most important action to prevent strike-off.

2. Check the strike-off notice.
   If the company has received a "First Gazette" notice, you may need to object or file accounts to stop dissolution.

🟠 Short-Term (within 30 days)

3. Confirm trading status.
   - If trading: prepare management accounts, review cash flow, and assess solvency. - If not trading: apply for voluntary strike-off using Form DS01 to avoid compulsory action.

4. Engage a qualified accountant to: - Prepare and file the first annual accounts - Calculate any tax liabilities (Corpor Tax, VAT, PAYE) - Advise on whether the company is solvent

5. Review director duties.
   Under UK law, directors must act in the interests of creditors when insolvency is likely. Continuing to trade while insolvent could result in wrongful trading claims.

🟡 Longer-Term (if the company survives)

6. Institute basic financial controls: - Separate business and personal bank accounts - Maintain up-to-date bookkeeping - Prepare monthly management accounts - File accounts and confirmation statements on time

7. Consider adding a second director or external advisor to reduce concentration risk.

8. If the business model is unviable, take insolvency advice early.
   A licensed insolvency practitioner can explain the difference between: - CVL (creditor-friendly) - Administration (rescue attempt) - Creditors' voluntary arrangement (CVA)

Executive Summary

275 FOUNDATION LTD is in critical financial and regulatory distress: its accounts are overdue and Companies House has proposed strike-off, meaning the company may be dissolved within months unless urgent action is taken. No financial statements exist in the public domain, so solvency and trading performance cannot be verified, but the combination of non-filing and strike-off action points to a business that is either dormant, abandoned, or insolvent. Immediate filing of overdue accounts and a clear decision on the company's future — trade, strike off, or insolvency — are essential to limit director liability and avoid losing any company assets to the Crown.

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