Company Number: 14098815

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk evidenced by negative net assets and shareholders’ funds, combined with substantial long-term liabilities far exceeding current assets. The liquidity position is weak, with minimal cash on hand and net current liabilities, indicating difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative net assets of £74,844 and shareholders’ funds indicate an insolvency position on the balance sheet.
• High level of long-term creditors (£2.29 million) compared to fixed assets (£2.62 million) and negligible current assets (£1,970 cash), suggesting heavy reliance on external financing and potential refinancing risk.
• The company has no employees reported and no income statement filed, limiting transparency on operational profitability and cash flows.

3. Positive Indicators:

• The company holds substantial investment property valued at £2.45 million, which is a tangible asset base that could potentially be monetized or leveraged.
• No overdue filing deadlines and up-to-date returns indicate compliance with statutory obligations to date.
• The company is relatively new (incorporated in 2022), which may imply that current financial difficulties are part of a startup phase or restructuring.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, including repayment schedules, interest rates, and covenants.
• Clarify the operational status and revenue generation capacity, given the absence of employees and missing income statement disclosures.
• Assess the valuation and liquidity of the investment property asset to determine its realizable value under stressed conditions.
• Review the background and intentions of significant shareholders and directors, especially regarding capital injections or support plans.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that may further impact financial stability.