Company Number: 13143990

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

1. Risk Rating: HIGH

The company exhibits a high risk profile primarily due to its negative net assets position and significant current liabilities that vastly exceed current assets, indicating solvency and liquidity concerns.

2. Key Concerns:

• Negative Shareholders’ Funds: The company has a shareholders’ deficit of £1,674 as at 31 January 2024, although this is an improvement from prior years. Persistent negative equity suggests accumulated losses and potential solvency issues.

• Poor Liquidity Position: Net current liabilities stood at £107,629 with cash at only £2,805. Current liabilities of £119,838 vastly exceed current assets of £12,209, indicating potential difficulty meeting short-term obligations.

• High Long-Term Debt: The company carries substantial long-term borrowings of £400,280, secured by investment properties. While these are interest-only mortgages with long maturities, the large debt burden relative to net assets and cash flow raises concerns about financial stability and servicing capacity.

3. Positive Indicators:

• Asset Base in Investment Property: Fixed assets primarily comprise investment properties valued at £509,561, which represent tangible collateral securing borrowings.

• Loan Terms: The bank loans are interest-only with long maturities (final instalments due around 2046-2048) and relatively moderate interest rates (3.24% to 4.89%), providing some breathing room on cash outflows.

• Single Director with Significant Control: The director, Mr. Anthony Roland Gilbody, holds 75-100% ownership and voting rights, implying clear decision-making authority and alignment of control.

4. Due Diligence Notes:

• Valuation of Investment Properties: The investment property values are director-assessed without an independent valuation. Verification of fair values by a qualified external valuer is critical due to their materiality.

• Cash Flow and Debt Servicing: Detailed examination of cash flow statements and forecasts to assess the company’s ability to meet interest payments and short-term liabilities is needed.

• Related Party Loans: The director has made interest-free loans repayable on demand totaling £119,838 included in current liabilities. Clarify terms, repayment likelihood, and impact on liquidity.

• Going Concern Assessment: The accounts claim going concern basis; further scrutiny of management’s plans to address negative equity and liquidity pressures is advisable.

• Compliance and Filing Status: No overdue filings noted. Confirm ongoing compliance and monitor for any late submissions or regulatory issues.

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