Company Number: 13259552

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits substantial long-term liabilities (£477,831 bank loans) compared to its net assets (£103,436), and consistently negative net current assets, indicating potential solvency and liquidity challenges.

2. Key Concerns:

   • Liquidity Risk: Negative net current assets (~£3,700) and low cash balances (£3,947 as of 2024) suggest limited short-term liquidity to cover immediate obligations.
   • High Leverage: Long-term bank loans exceed four times shareholders’ funds, raising concerns about debt servicing ability and financial stability.
   • Lack of Operational Activity: No employees reported and no income statement filed, indicating minimal or no trading activity which could impair ability to generate cash flows.

3. Positive Indicators:

   • Valuable Fixed Asset Base: Investment property valued at £585,000 provides substantial asset backing.
   • Timely Compliance: Accounts and confirmation statements are filed on time, demonstrating good regulatory compliance.
   • Stable Shareholders’ Funds: Shareholders’ equity has remained stable over multiple years, indicating no erosion of capital.

4. Due Diligence Notes:

   • Investigate the nature and terms of the £477,831 bank loan, including repayment schedule and covenant compliance.
   • Clarify reasons for persistent negative net current assets and assess cash flow forecasts to understand liquidity management.
   • Confirm operational status and revenue generation, given absence of employees and no income statement disclosure.
   • Review any contingent liabilities or off-balance sheet obligations not disclosed.
   • Assess market valuation and liquidity of the investment property to gauge realizable value in stress scenarios.