Company Number: 13819963

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net liabilities as at 31 December 2023. The net assets have deteriorated from a small positive amount in 2021 to a negative position in 2023, indicating the company's liabilities exceed its assets.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have declined to -£6,392 as of the latest accounts, driven by high creditors especially long-term liabilities (£382,435). This suggests a solvency risk.
• Working Capital Deficit: Current liabilities (£145,201) exceed current assets (£7,594) by a large margin, resulting in a net current liability of £137,607. This indicates potential liquidity issues and difficulty in meeting short-term obligations.
• High Long-Term Creditors: The presence of substantial creditors falling due after more than one year (£382,435) raises concerns regarding the company’s ability to service long-term debt and sustain operations.

3. Positive Indicators:

• Asset Base Growth: Fixed assets increased significantly from £95,000 in 2021 to £513,650 in 2023, which may reflect investment in property consistent with its real estate letting activity.
• No Overdue Filings: The company is current with its statutory filings (accounts and confirmation statements), indicating compliance with regulatory requirements.
• Experienced Directors: The company has stable management with two current directors, both British nationals residing at the registered office address, suggesting continuity in governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term creditors (£382,435) to assess repayment schedules, covenants, and potential refinancing risks.
• Review cash flow statements and management accounts (not provided) to understand operational cash generation and short-term liquidity management.
• Confirm whether the fixed assets valuation includes revaluations and their market realizable value, particularly as the company operates in real estate letting.
• Explore any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Evaluate the business model’s sustainability given the negative working capital and net asset position, including tenant occupancy and rental income stability.