Company Number: 12459375

Analysis Date: 2025-07-29 14:14 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and fixed asset holdings in investment property, but persistent negative net current assets and significant current liabilities relative to cash suggest liquidity pressures that may impact near-term solvency.

2. Key Concerns:

• Negative Working Capital: Net current assets remain significantly negative (£207k in 2024), indicating current liabilities far exceed current assets, which could impair ability to meet short-term obligations.
• Concentration in Investment Property: Fixed assets are almost entirely investment property (£434k), which may not be easily liquidated quickly to cover liabilities if needed.
• Rising Long-Term Debt: Bank loans have increased from £141k to £186k from 2023 to 2024, increasing financial leverage and fixed obligations.

3. Positive Indicators:

• Increasing Net Assets: Net assets improved from £43k in 2023 to £54k in 2024, reflecting some growth in equity.
• No Overdue Filings: Company is compliant with statutory filing deadlines, suggesting good governance and regulatory adherence.
• Stable Directors and Registered Office: Presence of two directors with stable occupancy and no indication of disqualifications or governance issues.

4. Due Diligence Notes:

• Review detailed cash flow statements and debtor aging to assess the quality and timing of cash inflows.
• Understand the nature and terms of bank loans, including repayment schedules and covenants.
• Clarify the valuation and liquidity of investment property assets to confirm they can support refinancing or sale if needed.
• Investigate the business model and revenue streams given the absence of employees and the nature of real estate activities.
• Confirm no undisclosed related party transactions or contingent liabilities exist.