ESCRICK DEVELOPMENTS LIMITED

Risk Rating: MEDIUM
Justification: The company is active and has met its statutory filing obligations, with no indication of formal insolvency proceedings. However, it has reported negative net assets in each of the last two financial years, and current liabilities exceed current assets. These indicators point to a weakened balance sheet and limited near-term liquidity, warranting caution despite the company’s continued operation.

Key Concerns
- Negative net assets: Shareholders’ funds are negative (£-11,919 at 31 March 2025 and £-4,743 at 31 March 2024), meaning total liabilities exceed total assets. This is a direct balance sheet solvency warning sign.
- Negative working capital: Current liabilities of £160,006 exceed current assets of £117,479 by £42,527. Without a detailed cash breakdown, the company’s ability to meet obligations due within 12 months is uncertain.
- Erosion of equity and minimal capital base: Shareholders’ funds have fallen from £93,144 (31 March 2018) to negative £11,919 (31 March 2025), while issued share capital is only £4. This provides little buffer against further losses.

Positive Indicators
- Statutory compliance: Annual accounts and confirmation statement are not overdue; the company remains in active status.
- No insolvency proceedings: The company is not in liquidation, administration, or receivership.
- Operational continuity: Incorporated in 2009, with two employees reported in the latest accounts, suggesting a stable, if small, operating structure.
- External account preparation: Accounts are prepared by chartered accountants, though they are unaudited and filed under micro-entity provisions.

Due Diligence Notes
- Request a detailed current asset composition (cash, debtors, stock) to assess immediate liquidity.
- Identify the creditors included in the £160,006 falling due within one year, including any amounts owed to directors, connected parties, or tax authorities.
- Obtain recent management accounts and a cash flow forecast to determine whether the negative equity trend is stabilising or worsening.
- Clarify the relationship between the company and its accountants, given that the accountants’ office address matches the registered office address.
- Review any director loan accounts or personal guarantees that may support the company’s liabilities.
- Investigate the business rationale behind the previous name change from LiftShare Parking Limited and any resulting change in operations.