Company Number: 13134218

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk indicated by persistent negative net assets and net liabilities exceeding £8,000 at the latest year-end. The balance sheet shows total creditors due after more than one year surpassing current assets, and shareholders’ funds remain negative over multiple years.

2. Key Concerns:

• Negative Net Assets / Shareholders’ Deficit: The company has recorded negative equity since at least 2021, reaching -£8,460 as of December 2024, suggesting ongoing losses or undercapitalization.
• Substantial Long-Term Creditors: Creditors falling due after more than one year are approximately £328k, considerably higher than current assets (~£9k), indicating heavy reliance on long-term debt financing.
• Limited Liquidity Cushion: Current assets (~£9k) are significantly lower than current liabilities (~£328k), though net current assets are positive due to a minimal creditors’ figure (£420). This tight liquidity position could impair the company’s ability to meet short-term obligations without refinancing.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets remain consistent at £310,797 over the past years, indicating some underlying asset backing.
• No Overdue Filings: The company has maintained timely filing of accounts and confirmation statements, suggesting compliance with statutory requirements.
• Sole Director and PSC Consistency: Mr Ioannis Bardis, who holds 75-100% control and is the sole director, provides stable and transparent governance oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (~£328k) to assess repayment obligations and covenants.
• Clarify reasons for sustained negative equity and whether there are plans to recapitalize or improve profitability.
• Review cash flow statements and underlying operational performance to determine if the company can generate sufficient cash to service debts.
• Confirm asset valuation adequacy and potential impairment risks given the negative net asset position.
• Assess director’s plans for financial restructuring or additional funding.