TOUCH GUARD LTD

Information Basis: This assessment is based solely on the provided company data and the latest filed accounts extract. No management accounts, bank statements, creditor agreements, or independent verification were available. The accounts are unaudited, filleted, and prepared under the small companies regime, so profitability and cash flow cannot be fully assessed.

1. Risk Rating

HIGH

The company is balance-sheet insolvent. At 31 December 2025 it reported net liabilities of £261,252, negative shareholders’ funds of £261,352, current assets of only £5,673, and current liabilities of £266,929. The balance sheet shows a very thin asset base, persistent negative equity, and significant reliance on a director loan. The confirmation statement is also recorded as overdue. Although the company is active and not in liquidation, the solvency, liquidity, and governance indicators are elevated.

2. Key Concerns

1. Solvency and negative equity:
   Net liabilities have persisted and deteriorated over the available history, from negative shareholders’ funds of approximately £164k at 30 June 2016 to £261k at 31 December 2025. Current assets cover only about 2% of current liabilities. The company appears to be trading with liabilities substantially in excess of assets, and the filed accounts do not disclose a formal solvent restructuring, creditor support agreement, or going-concern statement in the extract provided.

2. Liquidity and related-party reliance:
   Current assets consist almost entirely of other debtors of £5,673, with no cash disclosed in the 2025 balance sheet extract. Creditors due within one year include trade creditors of £51,561 and other creditors of £215,368, of which £213,698 is a director loan in favour of Mr S P Xxxxxxxname shown to subscribers. This director loan represents roughly 80% of total liabilities. If repayable on demand, it presents a material liquidity dependency; if informally subordinated, that support should be documented.

3. Compliance and disclosure limitations:
   The confirmation statement is marked overdue (next due 19 February 2026). The accounts are audit-exempt, filleted, and do not include a profit and loss account, turnover, or cash flow statement. This limits visibility on trading performance, profitability, and cash generation. An overdue confirmation statement is a governance issue and, if persistent, can escalate to penalty or strike-off action.

3. Positive Indicators

• The company is active and not recorded as in liquidation, administration, or receivership.
• The latest accounts are not overdue: next accounts due 30 September 2027.
• The filed notes disclose no contingent liabilities or capital commitments, although the note wording references 2024/2023 rather than 2025.
• The director/shareholder loan has remained in place historically, which may indicate continued shareholder support, but the terms are not evidenced in the extract.
• The company has a small employee base of 2 and minimal fixed assets, suggesting a low physical asset footprint.

4. Due Diligence Notes

Specific items to investigate:

• Obtain full statutory accounts including profit and loss, turnover, gross margin, and cash flow, plus recent management accounts and bank statements.
• Review the £213,698 director loan documentation: repayment terms, demand provisions, subordination or standstill arrangements, and written confirmation of continued support.
• Analyse aged trade creditors and the nature/recoverability of the £5,673 other debtors.
• Check for VAT/PAYE arrears, Crown creditor pressure, county court judgments, legal claims, and any registered charges.
• Confirm the overdue confirmation statement has been filed and check for any Companies House strike-off action or recent filing irregularities.
• Review going-concern assessment and post-year-end trading performance.
• Verify director and PSC records, including any disqualification or insolvency history not included in the provided data.

Names of the people mentioned are shown to subscribers. See subscription