Company Number: 13558627

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround in net assets from negative £121k in 2023 to positive £48k in 2024, indicating improved solvency. However, current liabilities remain substantial relative to current assets, and historical negative net assets and working capital deficits suggest recent financial stress.

2. Key Concerns:

• Historical liquidity challenges: The company had negative net current assets (£-61k) in both 2022 and 2023, implying past difficulties in meeting short-term liabilities.
• Reliance on a single controlling shareholder (West End Agency Services Limited) owning 75-100% of shares, which could pose governance and financial dependency risks.
• Limited scale and financial data: As a micro-entity with minimal fixed assets (£1k) and very low share capital (£120), the company may have limited financial resilience and operational scale.

3. Positive Indicators:

• Recent financial improvement: A positive turnaround in net current assets to £47k and net assets to £48k as at 31 March 2024 suggests better liquidity and solvency.
• Compliance with statutory filings: No overdue accounts or confirmation statements indicate good regulatory compliance to date.
• Experienced directors appointed recently (March 2025), which may strengthen governance.

4. Due Diligence Notes:

• Investigate the reasons behind the substantial improvement in net assets in 2024 compared to prior years and assess sustainability of this trend.
• Review cash flow statements and creditor aging to evaluate ongoing liquidity position and ability to meet short-term obligations.
• Confirm the extent and nature of financial or operational support provided by the controlling shareholder.
• Assess business model viability within the leisure and accommodation sector (SIC codes: tour operator and accommodation) given recent industry challenges.
• Verify the change in directors in March 2025 and any impact on company strategy or risk profile.