Company Number: 12500662

Analysis Date: 2025-07-29 18:45 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds, indicating solvency concerns. Current liabilities significantly exceed current assets, signaling liquidity difficulties. Additionally, the company has no employees and minimal share capital, raising questions about operational scale and sustainability.

2. Key Concerns:

• Negative net assets of £24,762 as of 31 March 2024, worsening from prior years, suggesting ongoing financial strain and potential inability to meet obligations.
• Current liabilities of £204,262 dwarf current assets of £9,046, resulting in a large working capital deficit and risk of cash flow shortfalls.
• Fixed assets held largely unchanged at £266,174 may be illiquid property holdings, but high long-term creditors (£204,262) indicate significant debt leveraged against these assets, increasing financial risk.

3. Positive Indicators:

• The company is compliant with filing requirements, with no overdue accounts or confirmation statements, indicating good governance in statutory reporting.
• Directors and significant controllers appear stable and local, with no apparent disqualifications or governance red flags from the available data.
• The company is registered as a micro-entity and benefits from simplified reporting, which may reduce administrative burdens.

4. Due Diligence Notes:

• Review the nature and terms of long-term creditors (£204,262) to understand repayment obligations and any secured lending against fixed assets.
• Assess cash flow statements or management accounts (not filed) to evaluate operational cash generation and liquidity management.
• Investigate business model viability given no employees and minimal current assets; confirm whether the company is actively trading or holding property investments.
• Clarify reasons for persistent negative equity and explore any plans management has for recapitalization or debt restructuring.
• Confirm absence of related party transactions or contingent liabilities that may impact solvency.