Company Number: 13644379

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets and working capital deficits over multiple years.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders' funds have been negative since incorporation, worsening from -£78k in 2021 to -£115k in 2024, indicating accumulated losses and erosion of equity.
• Severe Working Capital Deficit: Current liabilities (£650k in 2024) far exceed current assets (£5.5k in 2024), resulting in a negative net current asset position of -£289k, which raises concerns about the company’s ability to meet short-term obligations.
• High Secured Debt: The company has substantial secured bank loans (£650k), increasing notably from £451k in 2023, which could pressure cash flows and operational flexibility.

3. Positive Indicators:

• Stable Fixed Asset Base: The fixed assets (investment properties) remain constant at £824,812, suggesting a tangible asset base underpinning the company’s operations.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• Single Director and PSC: The company is closely held by one individual, which may allow for swift decision-making and streamlined governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the secured bank loans, including repayment schedules and covenants, to assess refinancing risks.
• Review cash flow forecasts and working capital management to understand how the company plans to cover liabilities given the current liquidity shortfall.
• Examine the valuation methodology of investment properties to validate the fixed asset carrying values and assess potential impairment risks.
• Clarify the company’s revenue generation and profitability trends as turnover details are absent, limiting assessment of operational stability.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed.