Company Number: 13644881

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk primarily due to persistent negative net current assets and high levels of long-term liabilities relative to equity. The minimal liquidity and low net assets raise concerns about its ability to meet short-term obligations and sustain operations without additional capital or restructuring.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities around -£18,000, indicating potential liquidity stress and challenges in covering immediate liabilities from current assets.
• High Long-Term Creditors: Creditors due after more than one year exceed £260,000, which significantly outweighs the company's net assets, suggesting high gearing and dependency on creditor financing.
• Minimal Equity Buffer: Shareholders’ funds have only just turned positive (£4,346 as of 2024), after previously being negative, indicating a fragile capital structure with limited cushion against losses or financial shocks.

3. Positive Indicators:

• Stable Fixed Assets Base: The company holds fixed assets valued at approximately £285,000 consistently over recent years, which could represent valuable real estate assets aligned with its SIC code for letting and operating own or leased real estate.
• Timely Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance and governance practices.
• Experienced Directors and PSCs: The presence of two British nationals with significant control, including the director Adriana Zymberaj, suggests stable ownership without red flags in director conduct or disqualifications.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (e.g., loans secured against fixed assets, repayment schedules) to assess refinancing or default risk.
• Review detailed cash flow statements or management accounts if available to better understand operational cash generation or reliance on external funding.
• Clarify the revenue, profitability, and tenancy status of real estate assets to evaluate ongoing business viability and potential for improving liquidity.
• Confirm there are no undisclosed contingent liabilities or off-balance sheet obligations that could exacerbate financial risk.
• Assess any plans or actions by management to address the negative working capital and improve capital structure.