Company Number: 13123356

Analysis Date: 2025-07-20 11:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by persistent net current liabilities, negative net assets, and substantial related party debts. The financial position deteriorated over two years despite asset growth, indicating operational and financial stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: As of 31 January 2024, net assets stand at -£71,357, worsening from -£37,528 the previous year, indicating ongoing losses eroding equity.
• Severe Working Capital Deficit: Current liabilities (£373,424) substantially exceed current assets (£146,842), resulting in a net current liability of -£226,582, raising liquidity risk.
• High Related Party Debt: The company owes £239,693 to 1KP Limited and £125,000 to Bellingham Property LLP, both associated entities, suggesting reliance on affiliated parties for funding which may be precarious.

3. Positive Indicators:

• Investment Property Asset Growth: Investment property increased from £153,787 to £293,970, potentially providing collateral and future income through rentals or capital appreciation.
• Cash Balance Improved: Cash holdings rose significantly to £141,375, which may help short-term liquidity despite overall working capital deficits.
• No Overdue Filings: The company is current on accounts and confirmation statement filings, indicating compliance with statutory obligations.

4. Due Diligence Notes:

• Assess Sustainability of Related Party Funding: Investigate terms and enforceability of debts owed to related parties and their willingness to continue support.
• Review Rental Income and Property Valuation: Confirm fair value measurements of investment properties and verify rental income stability to assess ongoing cash flow.
• Examine Director’s Support and Financial Plans: As the director is the sole significant controller and has provided advances, understand plans to resolve negative equity and improve solvency.
• Check for Contingent Liabilities or Guarantees: Explore any off-balance sheet liabilities or guarantees that may further impact financial health.