Company Number: 13022747

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and a heavy reliance on long-term debt relative to its equity base. The balance sheet reflects financial stress with limited liquidity, indicating a high solvency risk.

2. Key Concerns:

• Negative Working Capital: Net current assets are deeply negative (£-82,143 as of 2023), indicating the company may struggle to meet short-term obligations as current liabilities (£82,180) far exceed current assets (£37).
• High Leverage: The company carries substantial bank loans (£156,614) compared to very modest net assets (£2,431), suggesting a high debt burden relative to equity.
• Director Loans Exposure: The company owes £74,867 to directors, representing a significant related party liability which could complicate financial stability and creditor claims.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed timely, indicating compliance with regulatory requirements.
• Continuous Operation: Company status is active with no signs of liquidation or administration.
• Stable Fixed Asset Base: Investment in real estate assets remains stable at £241,188, which could be a source of value or collateral.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans and director loans, including repayment schedules and any security held.
• Review cash flow statements or management accounts to assess liquidity beyond balance sheet snapshots.
• Confirm the valuation and marketability of the fixed asset investments to evaluate potential for asset-based recovery.
• Clarify the business model and revenue generation given the minimal turnover data and negative working capital.
• Assess any contingent liabilities or off-balance sheet arrangements related to the property holdings.