Company Number: 14169800

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity risks due to negative net assets and substantial long-term liabilities exceeding total assets.

2. Key Concerns:

• Negative Net Assets: Net liabilities of £12,533 as of 31 March 2024 indicate the company’s liabilities exceed its assets, a sign of financial distress.
• High Long-Term Debt: Creditors falling due after more than one year increased markedly from £184,290 in 2023 to £574,742 in 2024, primarily bank loans and director loans, suggesting heavy leverage and potential repayment burden.
• Minimal Liquidity: Cash reserves are very low (£3,709), and current assets are minimal relative to current liabilities (£574,742 long-term creditors but current liabilities figure not separately disclosed here, though implied to be significant), indicating potential cash flow challenges.

3. Positive Indicators:

• Asset Growth: Tangible fixed assets increased substantially from £169,950 to £558,850, reflecting investment in property assets aligned with its real estate SIC codes.
• No Filing Delinquencies: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Experienced Directors: The directors include individuals with professional backgrounds (doctors) and established control, which may support governance stability.

4. Due Diligence Notes:

• Examine Debt Terms: Detailed review of bank loan covenants, repayment schedules, and director loan conditions is critical to assess refinancing or default risk.
• Cash Flow Analysis: Obtain management accounts or cash flow forecasts to evaluate ability to meet short-term obligations given low cash and negative working capital.
• Asset Valuation: Verify the valuation and marketability of fixed assets (land and buildings) to understand realisable value in distress scenarios.
• Profitability and Revenue Streams: Limited financial data on income or profitability is available; further investigation into operational performance and revenue generation is needed to assess sustainability.
• Related Party Transactions: Scrutinize director loans and any related party dealings for conflicts of interest or unusual terms.