Company Number: 14193062

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing net liabilities and negative shareholders’ funds, indicating solvency challenges. The significant deterioration from £-384 in 2023 to £-6,320 in 2024 suggests financial distress. The negative net current assets position worsened markedly to £-10,353, raising liquidity concerns.

2. Key Concerns:

• Solvency and Capital Deficiency: Shareholders’ funds are deeply negative and have deteriorated substantially over two years, indicating the company’s liabilities exceed its assets.
• Liquidity Risk: Current liabilities (£11,960) significantly exceed current assets (£1,607) with very limited cash (£1,435), suggesting potential difficulties in meeting short-term obligations.
• Operational Stability: The company employs only 2 persons (directors) and has not reported revenue or profit figures in the filed accounts, implying limited operational scale and potential sustainability issues.

3. Positive Indicators:

• Compliance and Governance: All statutory filings including accounts and confirmation statements are up to date with no overdue submissions, reflecting good regulatory compliance.
• Experienced Leadership: Both directors are professionally qualified quantity surveyors, which aligns with the company's activity in building project development, potentially supporting operational competence.
• Active Web Presence: The company has an active website with contact details, which supports business legitimacy and marketing efforts.

4. Due Diligence Notes:

• Review underlying reasons for the negative equity and net current liabilities, including detailed examination of creditor composition and payment terms.
• Investigate cash flow statements or management accounts (not filed) to assess ongoing liquidity and operational cash generation capability.
• Clarify the nature and extent of tangible assets (£3,750) and intangible assets (£283) to understand asset quality and realizability.
• Confirm whether the company is trading at a loss and understand the business model and revenue generation to assess future viability.
• Verify the ownership structure with Bacon Holdings Ltd controlling 75-100% shares to understand group support or exposure.