Company Number: 12517607

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent negative net current assets and very low cash balances, indicating potential liquidity and solvency challenges.

2. Key Concerns:

• Liquidity Shortage: Cash on hand has dramatically fallen to £35 as of 31 March 2025, down from £293 the prior year, while current liabilities remain significant (£3,911), leading to a net current liability position of -£3,876. This raises concerns about the company’s ability to meet short-term obligations.
• Persistent Working Capital Deficit: Negative net current assets have been chronic over the last three years, signaling ongoing operational cash flow difficulties.
• Declining Net Assets and Profit Reserves: Net assets have decreased from £8,181 in 2024 to £5,883 in 2025, with a corresponding reduction in the profit and loss reserve, suggesting erosion of equity and potential operational losses or asset impairments.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements and good governance in this regard.
• Stable Share Capital and Ownership: The company has a nominal share capital of £100 and consistent directorship by two individuals with relevant experience as property lessors.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at £9,759, which although depreciating, represent a stable asset base.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly taxes and social security liabilities (£3,611), to assess timing and risk of default.
• Review cash flow statements (not available here) to understand operational cash generation and capital expenditure plans.
• Confirm the valuation and liquidity of the tangible fixed assets, as the company’s property-related activities depend on these.
• Evaluate the business model sustainability given persistent liquidity constraints and shrinking equity.
• Assess potential contingent liabilities or off-balance sheet exposures that may impact solvency.