Company Number: 13884894

Analysis Date: 2025-07-29 18:11 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk with net liabilities worsening from -£18,062 to -£61,136 over two years despite holding substantial investment property assets. The large creditor balance relative to current assets and ongoing negative equity indicate financial distress.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: Persistent and increasing negative equity suggests the company’s liabilities exceed its assets, undermining solvency.
• High Long-Term Liabilities: Creditor amounts due after more than one year total £1.32 million, mainly loans including director loans, far exceeding current asset levels (~£20k).
• Lack of Operational Activity: No employees and minimal current assets with no turnover data indicate the company may not be generating operational cash flows to service debt.

3. Positive Indicators:

• Investment Property Asset: The company owns an investment property valued at approximately £1.24 million, which is a tangible asset that could potentially be leveraged or sold.
• Compliance with Filings: The company is active, up to date with accounts and confirmation statement filings, and has not breached any regulatory deadlines.
• Single Director with Legal Expertise: The sole director is a lawyer, which may support sound governance and compliance management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1.32 million in creditor loans, particularly director loans, including repayment schedules and potential for restructuring.
• Assess the liquidity position and cash flow forecasts to determine ability to meet short- and long-term obligations.
• Confirm the valuation and marketability of the investment property asset and whether it is generating income or is encumbered.
• Review any contingent liabilities, related party transactions, or guarantees linked to the director loans.
• Understand the company’s business plan since incorporation and prospects for operational cash generation given no employees and limited current assets.