Company Number: 14358434

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: HIGH

   The company exhibits high financial risk based on its current financial position and limited operating history. Negative net assets and net current liabilities indicate solvency concerns, while the absence of profitability and significant liabilities due within one year amplify liquidity risk.

2. Key Concerns:

   • Negative Net Assets and Shareholders’ Funds: The company shows net liabilities of £4,801 and negative shareholders’ funds, signaling that liabilities exceed assets and raising questions about solvency.

   • Significant Current Liabilities Against No Current Assets: Net current assets are negative £593,018, with £593,018 in current liabilities comprising bank loans and other creditors, indicating potential liquidity pressure to meet short-term obligations.

   • Limited Operating History and Scale: Incorporated in September 2022, the company has just over one year of trading and only one employee, which limits historical performance data and operational stability evidence.

3. Positive Indicators:

   • Substantial Tangible Fixed Assets: The company holds £588,217 in tangible fixed assets (mainly land and buildings), which could provide collateral value or underpin future operations.

   • No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance in maintaining statutory requirements.

   • Sole Director and Controlling Shareholder Alignment: The same individual controls 75-100% of shares and voting rights and serves as director, which can facilitate swift decision-making and consistent leadership.

4. Due Diligence Notes:

   • Assess the nature and terms of the £350,000 bank loan and other creditors amounting to £243,018, including repayment schedules, covenants, and interest terms.

   • Investigate cash flow projections and working capital management plans to understand liquidity management and ability to meet short-term liabilities.

   • Review asset valuations and any encumbrances on the fixed assets reported, particularly the land and buildings, to determine realizable value.

   • Examine the business model and revenue generation strategy given the short operating period and single employee to evaluate operational sustainability.

   • Confirm any related party transactions or director loans that may affect the financial position but are not evident in the accounts.