Vigilance™ Indicators definitions

Financial indicators

A Vigilance™ flag is present if highlighted in yellow:

Early filing of accounts since incorporation: The company has filed it’s first year accounts faster than expected. 

Fast filing of accounts after year end: The company has filed its accounts sooner than expected after its year end date. 

Unique auditor/presenter: The company has used an auditor or presenter that has never been associated with any other company. 

Duplicated Accounts: The accounts filed by the company appear to be the same, or very similar to those filed by another company. 

Multiple accounts filed in close succession: The company has filed several different year end accounts in the period of a month. 

Benford’s Law: For further information please refer to our article What is Benford's Law?

Statistical indicators

Abnormal increase in net worth: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 5% of the UK company population has an increase in net worth of this magnitude. 

Abnormal initial share capital: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 1% of the UK company population has an initial share capital of this magnitude. 

Abnormal revaluation reserve: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 5% of the UK company population has a revaluation reserve to Total Assets ratio of this magnitude. 

Abnormal initial cash in bank: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 5% of the UK company population has an initial cash figure of this magnitude. 

Abnormal increase in pre-tax profit: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 5% of the UK company population has an increase in pre-tax profit of this magnitude. 

Exceptional profit with nominal investment: 

By analysing the dynamic relationship of certain financial values against their current and historic positions in relation to the filing population, we are able to calculate real time financial value thresholds. Only 1% of the UK company population has an increase in pre-tax profit of this magnitude. 

Behavioural indicators

Adverse Filing Annotations: Companies House use annotations to let users of the register know about potential issues with the information that has been supplied to them. 

No VAT registration and turnover exceeds VAT threshold: the company should be registered for VAT if it earns over £85k before 1/4/2024, £90k after 1/4/2024. 

Small change of accounting reference date: The company has changed its Accounting Reference Date(ARD) by a period of less than 8 days from the original ARD. By shortening the accounting period, even by a single day, a company can effectively gain up to three additional months to file its accounts from the date the change is officially recorded. 

Dormant Account Amendments: Amended accounts have been filed against a previously dormant set. 

Operational indicators

Companies House default address: The company has changed it registered office to the Companies House default address. If a company provides an address as its registered office that is not considered appropriate, or if there is no proof of permission to use the address, Companies House will assign this default address. The company will be notified, and given a period (usually 28 days) to provide a new address and evidence of authorization. Failure to respond or provide a new address within the specified timeframe can lead to the company being struck off the register. 

Possible virtual registered office: The company appears to be using a mailbox or PO Box as its Registered Office address. While many legitimate businesses use virtual offices, the anonymity they provide can be exploited by fraudsters who may use them to hide their identity and operations. 

Multiple director resignations: 50% or more of the board of directors has resigned from the company on the same day. 

Possible non conforming PSC appointed: The company appears to have an international company registered as a Person of Significant Control (PSC) that is not publicly traded company on a recognised stock exchange or regulated market. This maybe a breach of the criteria for registering a PSC at Companies House therefore reducing the transparency of the ultimate ownership of a UK company. 

Board consists of no UK resident individuals: The company appears to have no directors that have residence in the UK. 

Postcode Saturation Densities: The total number of companies with the same postcode as the subject company within the categories below 

Rapid Succession indicator

For further detail please refer to Rapid Succession