Company Number: 12839344

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns, with net current liabilities substantially exceeding current assets as of the latest financial year. The large increase in short-term liabilities, primarily due to amounts owed to the director, coupled with sizable long-term secured debt, raises solvency questions despite positive net asset figures.

2. Key Concerns:

• Sharp deterioration in net current assets from a positive £15,305 in 2024 to a negative £215,458 in 2025, indicating potential cash flow stress.
• A substantial increase in short-term creditors owed to the director (£218,161 in 2025 vs £19,977 in 2024), which although interest-free and repayable on demand, could indicate reliance on director funding and possible liquidity risk.
• Significant secured bank loans increased markedly from £168,288 to £503,732, increasing financial leverage and fixed charge obligations on investment properties.

3. Positive Indicators:

• The company’s total assets, primarily investment properties, have increased considerably (from £167,164 to £730,768), indicating asset growth and business expansion.
• Net assets remain positive at £11,578, reflecting some equity buffer despite increased liabilities.
• The company is compliant with filing deadlines and maintains an active status with no overdue returns or accounts.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the secured bank loans and the director’s loan account to assess repayment risks and potential refinancing needs.
• Investigate the cash flow projections and operational income from the investment properties to determine the sustainability of current liabilities coverage.
• Examine the absence of employees and the company’s operational model to understand revenue generation and ongoing operational expenses.
• Confirm that asset valuations (investment properties) are supported by independent appraisals, given the large increase in fixed assets on the balance sheet.
• Assess any contingent liabilities or off-balance sheet commitments not reflected in the accounts.