Company Number: 13014751

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to negative net assets and substantial liabilities exceeding its current assets. The persistent net current liabilities and negative shareholders’ funds indicate financial distress.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net assets are negative (£-55,797 as of 31 May 2024), indicating that liabilities exceed assets. This suggests potential insolvency risk if the situation does not improve.
• High Current and Long-Term Liabilities: Current liabilities (£297,708) and long-term bank loans (£803,250) are substantial relative to current assets (£51,126), causing negative net current assets (£-246,582), which raises liquidity concerns.
• Limited Operating Scale and Revenue Disclosure: The company operates with only one employee (the director) and reports no turnover or profit figures in the financial statements provided, which limits the assessment of operational sustainability and cash flow generation.

3. Positive Indicators:

• Stable Fixed Assets: Investment property valued consistently at £994,035 provides a tangible asset base. The valuation is maintained and not impaired, indicating some asset stability.
• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, reducing regulatory risk.
• Established Management: The current director has been in position since incorporation and continues to manage the company, suggesting continuity in governance.

4. Due Diligence Notes:

• Cash Flow and Profitability Analysis: Investigate underlying cash flows, revenue streams, and profit/loss dynamics that are not disclosed in the abbreviated accounts.
• Nature and Terms of Liabilities: Detailed review of the £803,250 bank loan terms, repayment schedule, covenants, and any potential defaults or breaches.
• Investment Property Valuation: Confirm the valuation methodology and market comparables for the investment property to assess asset realizability under distressed conditions.
• Operational Model and Revenue Generation: Clarify the business model, client base, and contracts to understand sustainability and future prospects.
• Director and Related Party Transactions: Examine any transactions involving directors or related parties that may impact financial stability or governance.