Company Number: 12792395

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent and increasing net liabilities, negative shareholders' funds, and significant current and long-term liabilities far exceeding current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities increased from approximately £214k in 2023 to £226k in 2024, indicating ongoing losses or capital erosion.
• Severe Working Capital Deficit: Net current liabilities stand at £6,612 in 2024, though improved from a much larger deficit in 2023, signaling potential liquidity stress to meet short-term obligations.
• Substantial Debt Exposure: Long-term creditors, including bank loans (£146k) and directors’ loans (£145k), total nearly £292k, indicating heavy reliance on external and related-party financing that may not be sustainable without operational profitability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with statutory filing obligations.
• Stable Tangible Fixed Assets: The company holds tangible fixed assets valued at approximately £72k, primarily land and buildings, which could support asset-based lending or sale if needed.
• Single Shareholder Control: Full ownership and control by Mr. Andrew John Raby may simplify decision-making and potential recapitalization efforts.

4. Due Diligence Notes:

• Examine Cash Flow and Profit & Loss Details: The absence of delivered profit & loss accounts limits insight into operational performance and cash flow trends—these should be requested.
• Assess Director and Bank Loan Terms: Investigate the nature, terms, and repayment schedules of director loans and bank loans to evaluate refinancing risks and creditor relationships.
• Review Business Plan and Market Conditions: Given the company’s activity in property development and real estate trading, understanding current project pipeline, market demand, and funding strategy is essential for assessing future viability.
• Confirm No Related Party or Governance Issues: Verify if any director conduct records or related party transactions might pose regulatory or reputational concerns.