I get the impression the MD has a couple of minimal capital companies set up with a friend/partner. The £2 paid up share capital suggests the minimum two directors with the minimum shareholding of £1 each. There is nothing intrinsically dodgy about this - many small businesses start out this way (any a lot of them never get any further) - though it is true that anyone wanting to start up a throw-away company to push a product with high risk of failure would probably also set it up in this way.
£20,000-odd total assets seems very much on the low side for a company manufacturing and marketing the range of products they claim, but again, that does not of itself imply any sort of dodgy dealing.
I see no evidence that there is any business impropriety going on here, and I think we should target our criticism instead on the technical plausibility of what appears to be a dowsing rod for detecting drugs and explosives.