Company Number: 12780798

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and substantial current liabilities far exceeding current assets. Its ability to meet short-term obligations appears compromised, raising serious financial stability risks.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net liabilities increased from approximately £48k in 2023 to £65k in 2024, indicating ongoing losses or capital erosion.
• Severe Working Capital Deficit: Current liabilities (~£515k) vastly outweigh current assets (less than £1k), resulting in a negative net current asset position of over £260k, which suggests acute liquidity stress.
• High Long-Term Debt: The company carries bank loans exceeding £515k, which is significant given its minimal current assets and operating scale, heightening the risk of default if income generation is insufficient.

3. Positive Indicators:

• Stability of Fixed Assets: The company holds tangible fixed assets valued at approximately £711k, likely investment properties, which have remained constant and may provide some asset backing for creditors.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements and a degree of administrative diligence.
• Ownership and Control Transparency: Ultimate control is clearly identified with a single individual owning 100% of shares, simplifying governance oversight.

4. Due Diligence Notes:

• Examine Cash Flow and Income Generation: Confirm the company’s operational income streams to assess how it services its current liabilities and bank loan. The accounts show no employees and minimal current assets, raising questions about business sustainability.
• Review Loan Terms and Covenants: Investigate the nature of the £515k bank loan, including repayment schedules, interest rates, and any breach of covenants that might trigger liquidity issues.
• Assess Investment Property Valuation and Marketability: Verify the valuation methodology and liquidity of the fixed assets, as these form the bulk of the company’s asset base and could impact solvency.
• Director and Related Party Transactions: Given the directors’ involvement and 100% ownership by Mr Aron Goldman, scrutinize any related party transactions or guarantees to understand financial obligations and potential conflicts.