CLAIM4YOU LTD
Company number 07039135 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Investment Risk Analysis: CLAIM4YOU LTD (07039135)
1. Risk Rating: HIGH
The company presents multiple severe risk indicators including an active proposal to strike off the register, overdue statutory filings, a dramatic collapse in asset values from £4.4M (2017) to £161K (2022), and significant related party balances that raise questions about asset recovery. The combination of regulatory non-compliance and financial deterioration makes this unsuitable for institutional investment without substantial further investigation and clarification.
2. Key Concerns
Concern 1: Strike-Off Proceedings and Regulatory Non-Compliance The company status shows "Active - Proposal to Strike off," indicating that a process has been initiated to remove the company from the register. This is typically initiated either by the company itself (voluntary strike-off) or by Companies House for failure to file documents. Both accounts (due 31 July 2024) and the confirmation statement (due 5 March 2026) are overdue. A strike-off can be suspended if objections are received, but the current status suggests fundamental operational or compliance failures. This creates material uncertainty about the company's continued existence.
Concern 2: Catastrophic Financial Deterioration The financial trajectory is deeply concerning:
| Year | Total Assets | Cash | Shareholders' Funds |
|---|---|---|---|
| 2017 | £4,380,223 | £2,087,558 | £2,667,662 |
| 2018 | £3,181,435 | £445,491 | £1,889,003 |
| 2019 | £611,885 | £1,553 | £441,387 |
| 2022 | £161,512 | £5,423 | £119,876 |
Total assets have declined by approximately 96% from their 2017 peak. Cash reserves have fallen from over £2 million to just £5,423. While shareholders' funds remain positive at £119,876, this represents a fraction of the historical position. The near-zero cash position raises immediate concerns about operational viability.
Concern 3: Related Party Transactions and Asset Quality The 2022 accounts reveal significant related party balances that raise concerns about asset recovery and potential conflicts of interest:
- Debtlaw Limited (a company in which name shown to subscribers was a shareholder and director) owed Claim4You £114,543 at year-end 2022, up from £6,331 in 2021. This single debtor represents approximately 71% of total current assets and 85% of the "other debtors" balance of £114,543.
- Debtlaw Limited also invoiced Claim4You a net amount of £74,232 during the year (2021: £222,734).
- Intrace Limited (another name shown to subscribers-connected company) had a £7,000 loan that "all parties agree... to be written off" - this represents a direct loss to Claim4You.
The concentration of assets in a related party debtor, combined with the write-off of another related party loan, raises questions about whether these transactions were conducted on arm's length terms and whether the debtor balance is recoverable.
3. Positive Indicators
Positive 1: Positive Net Asset Position Despite the severe decline, the company maintains positive shareholders' funds of £119,876 and net current assets of £119,617. The balance sheet is not technically insolvent as at the last filing date.
Positive 2: Directors' Loan Repayment The directors' loan balance has reduced from £17,202 owed by the directors to £3,608, with repayments of £3,757 during the year and advances of £17,351. While the loan remains interest-free and unsecured, the net reduction suggests some commitment to reducing related party balances.
Positive 3: Minimal External Debt The company has only £428 in bank loans/overdrafts, with trade creditors of £9,984 and taxation/social security of £23,125. The debt structure is relatively simple and not heavily leveraged with external borrowings.
4. Due Dilence Notes
Item 1: Strike-Off Origin and Intent Determine whether the strike-off proposal was initiated by the directors (voluntary) or by a third party/Companies House. If voluntary, understand why the directors wish to dissolve a company with £119,876 in net assets. If involuntary, understand what triggered the action. Check the Gazette notices for strike-off details and any objections filed.
Item 2: Debtlaw Limited Status and Recoverability Conduct urgent enquiries into Debtlaw Limited's financial position and ability to repay the £114,543 owed. If Debtlaw is insolvent or being wound up, Claim4You's most significant asset may be irrecoverable. Obtain confirmation of the debt's age, terms, and any security held. The dramatic increase from £6,331 to £114,543 in one year requires explanation.
Item 3: Intrace Limited Loan Write-Off Obtain full details of the £7,000 loan written off to Intrace Limited. Understand the commercial justification for lending to a related party and subsequently writing it off. This may have corporation tax implications and raises questions about directors' fiduciary duties.
Item 4: PSC Register Inconsistency The PSC register contains contradictory entries for name shown to subscribers - one showing 25-50% ownership/voting rights and another showing >75% ownership/voting rights. This inconsistency must be resolved and the register corrected. Combined with name shown to subscribers's 25-50% holding, this suggests potential control issues that need clarification.
Item 5: Business Activity Verification The SIC code 80300 (Investigation activities) and the holding of £41,546 in stocks/work-in-progress appears inconsistent for a claims management business with zero employees. Clarify the nature of current trading activities and the composition of the stock balance.
Item 6: Taxation Liability Composition Taxation and social security liabilities increased from £2,805 to £23,125. Determine whether this includes any penalties, interest, or disputes with HMRC that could indicate underlying compliance issues.