Company Number: 12938338

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by persistent negative net current assets and shareholders' funds over multiple years, indicating an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative net current assets of approximately £2.88 million as of 30 June 2024, with current liabilities exceeding current assets by the same amount, indicating liquidity risk.
• Negative shareholders’ funds of £802 consistently over the last few years, reflecting accumulated losses or deficits eroding the equity base.
• The company holds a sizeable investment property valued at £2.88 million, yet this asset is illiquid and cannot be readily converted to cash to cover current liabilities, raising concerns about operational cash flow sufficiency.

3. Positive Indicators:

• The company is compliant with statutory filing requirements; accounts and confirmation statements are filed on time, which suggests adherence to regulatory obligations and good governance in this area.
• Ownership and control are consolidated under a single director/shareholder, potentially allowing for swift decision-making and strategic direction.
• The investment property asset has appreciated slightly year over year, indicating some value retention or growth in the company’s fixed assets.

4. Due Diligence Notes:

• Investigate the composition of current liabilities to assess the nature and maturity profile of debts, especially as to whether any restructuring or refinancing is in place or planned.
• Review cash flow statements and management accounts (not provided) to understand operational cash generation and the company's ability to service liabilities.
• Clarify the company’s business model sustainability given zero staff and reliance on investment property; assess rental income, occupancy, and market conditions for the property sector it operates within.
• Assess the director’s plans or intentions regarding capital infusion, asset disposals, or other measures to address the negative net asset position.
• Confirm no ongoing or impending regulatory, legal, or insolvency proceedings given the financial distress indicators.