Company Number: 15073536

Analysis Date: 2025-07-29 18:11 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity and solvency concerns due to very high current liabilities relative to current assets, resulting in a large negative net working capital. This creates a risk that it may not be able to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£558,874) far exceed current assets (£22,000), with net current liabilities at £536,874, indicating potential cash flow distress.
• Short Operating History: Incorporated in August 2023 with only one year of financial data, limiting ability to assess operational stability or track record.
• Concentration of Control: 75-100% ownership by Bersham Holdings Ltd, potentially limiting minority shareholder influence and raising governance considerations.

3. Positive Indicators:

• Investment Property Asset: Owns investment property valued at £554,000, which is a tangible asset backing the company’s balance sheet.
• Compliance: Filings (accounts and confirmation statements) are up to date with no overdue reports, indicating regulatory compliance so far.
• Modest Employee Base: Only 2 employees, consistent with a lean operational structure, which may control overheads.

4. Due Diligence Notes:

• Investigate the nature of “other creditors” (£554,035) to understand what liabilities comprise this large current debt and their payment terms.
• Confirm the valuation method and marketability of the investment property, including any encumbrances or liens on the asset.
• Review cash flow forecasts and funding arrangements to assess how the company plans to service or refinance the large short-term liabilities.
• Assess the business model and revenue streams more fully, since the company is newly incorporated and currently reports minimal cash and debtors.
• Evaluate the relationship and financial position of the parent entity Bersham Holdings Ltd, as this may impact the company’s financial support or risk profile.