Company Number: 12786052

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: MEDIUM
   The company exhibits a solid asset base with substantial fixed asset investments and shareholder funds, but notable net current liabilities and reliance on director loans raise concerns about short-term liquidity and operational cash flow.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of £43,290 as of the latest financial year, indicating short-term obligations exceed current assets, which may impair its ability to meet immediate liabilities without additional funding.
• Significant Director Loans: £43,415 of current liabilities owed to directors suggests dependency on related party financing, which could present funding risk if directors choose not to continue support.
• Limited Cash Reserves: Cash at bank is minimal (£2,139), which may not suffice to cover ongoing operational expenses or unexpected outflows, posing liquidity risk.

3. Positive Indicators:

• Strong Fixed Asset Base: Investments and tangible fixed assets total over £500,000, reflecting substantial non-current asset backing and potential collateral value.
• Shareholders' Funds Stability: Share capital and share premium total £500,001, supporting a stable equity base and indicating committed capital from owners.
• Timely Compliance: The company is current on its statutory filings and accounts, indicating good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment schedules and any formal agreements, to understand dependency and risk.
• Review cash flow statements and working capital management to assess operational liquidity and timing of cash inflows/outflows.
• Examine the composition and valuation of fixed asset investments for realizable value and any impairment risks not captured in the balance sheet.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that might exacerbate liquidity pressures.