Company Number: 13976681

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and negative working capital persisting over multiple years. The reliance on director financial support to continue operations further elevates the risk profile.

2. Key Concerns:

• Persistent negative net assets (£-4,577 in 2024) and shareholders’ funds indicating insolvency on a balance sheet basis.
• Substantial current liabilities (£132,026) vastly exceeding current assets (cash £1,960), resulting in negative net current assets (£-130,066), which poses liquidity risk.
• Heavy reliance on a long-term bank loan (£303,750) secured by fixed charge with no principal repayments due for 25 years, and director advances (£131,126) signaling external support is critical to solvency.

3. Positive Indicators:

• The company owns investment property valued at £429,239, which is a significant asset base underpinning the balance sheet.
• The bank loan is interest-only with a long repayment horizon, reducing immediate cash flow pressure related to principal repayments.
• Timely filing of accounts and confirmation statements indicates regulatory compliance and functional governance processes.

4. Due Diligence Notes:

• Verify the market value and liquidity of the investment property to assess potential for asset monetization if needed.
• Evaluate the terms and conditions of the bank loan, including covenants and interest rate exposure.
• Assess the director’s capacity and willingness to continue providing financial support given the company’s ongoing losses and net liabilities.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Confirm the absence of related-party transactions or conflicts of interest given the director advances.