Company Number: 13611164

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in persistent negative net assets and substantial net current liabilities. The reliance on financial support from an associated company to maintain going concern status further elevates risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported negative net assets of approximately £62,480 for the most recent financial year, showing an ongoing erosion of equity.
• Severe Liquidity Pressures: Net current liabilities stand at around £763,269, with current liabilities vastly exceeding current assets and cash balances falling below £2,000, indicating a strained ability to meet short-term obligations.
• Dependence on Related Party Support: The directors acknowledge reliance on financial support from an associated company to continue as a going concern, highlighting potential vulnerability if such support ceases.

3. Positive Indicators:

• Growth in Fixed Assets (Investment Property): The valuation of investment property increased significantly from £612,549 to £996,693, suggesting asset base growth which could underpin future value.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Stable Ownership and Management: The company’s significant controllers and directors are clearly identified, with no records of director disqualification or governance issues evident.

4. Due Diligence Notes:

• Investigate the terms and sustainability of the financial support provided by the associated company, including any contingent liabilities or commitments.
• Review the valuation methodology and market conditions for the investment property assets to assess realistic recoverable values.
• Analyze the company’s cash flow forecasts and operational plans to understand strategies addressing liquidity deficits and moving towards positive net assets.
• Examine related party transactions in detail, especially the £317,613 owed to an associated company, to assess impact on financial stability.
• Confirm the absence of any pending litigation or regulatory actions that could materially affect the company’s financial position.