Company Number: 13879450

Analysis Date: 2025-07-20 17:16 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant net current liabilities and minimal working capital, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of approximately £199,704 as of January 2024, with current liabilities (£221,780) vastly exceeding current assets (cash £22,076), signaling liquidity constraints.
• High Amounts Owed to Group Undertakings: £195,000 of the current liabilities are owed to group undertakings, which may reflect intercompany financing but also adds to the short-term liabilities burden.
• Lack of Operating Employees and Income Disclosure: The company reported no employees during the year and has not disclosed turnover or profit/loss figures publicly, limiting insight into operational sustainability and cash flow generation.

3. Positive Indicators:

• Fixed Asset Base: The company holds tangible fixed assets (land and buildings) valued at £207,000, which could provide collateral value and a base for future operations or refinancing.
• Timely Filing and Active Status: The company is active, with no overdue filings for accounts or confirmation statements, indicating compliance with statutory obligations.
• Stable Shareholder Funding: Shareholders' funds increased modestly from £2,707 in 2023 to £7,296 in 2024, showing some equity injection or retention of earnings.

4. Due Diligence Notes:

• Investigate the nature and terms of the £195,000 owed to group undertakings, including repayment schedules and any agreements governing these intercompany loans.
• Confirm the company's revenue streams and cash flow status since turnover and profit/loss information are not disclosed in the accounts.
• Assess management plans to address the substantial working capital deficit and the timeline for achieving positive liquidity.
• Evaluate the condition and market value of the fixed assets to understand potential recovery value if liquidity issues worsen.
• Review director backgrounds and any related party transactions given all three directors also appear as significant controllers.