Company Number: 12594214

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, notably persistent negative net current assets, and substantial long-term liabilities relative to net assets.

2. Key Concerns:

• Liquidity Risk: The company holds minimal cash (£864 as of March 2024) and current assets (£2,330) against current liabilities of £32,970, resulting in a negative net working capital of approximately £30,640. This indicates potential difficulty in meeting short-term obligations.
• Leverage and Solvency: Long-term bank loans of £83,558 significantly exceed net assets (£10,332), indicating high leverage. Although the company’s investment property is valued at £124,530, the heavy reliance on debt financing raises solvency risk if asset values decline or cash flows falter.
• Operational Sustainability: The company has no employees and minimal operational activity disclosed; furthermore, it has not submitted an income statement due to small company exemption, limiting insight into profitability and cash flow generation. This raises questions on the ongoing sustainability of the business model.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statements), indicating regulatory compliance and governance discipline.
• The main asset is an investment property valued consistently at £124,530, providing a substantial tangible asset base.
• Shareholder control is concentrated in a single individual with clear authority, which can facilitate decisive management.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans, including repayment schedules and covenant compliance.
• Assess the valuation methodology and market conditions for the investment property to confirm asset reliability.
• Request management accounts or cash flow forecasts to evaluate operational cash generation and liquidity management.
• Clarify the business model and revenue streams, given the absence of employees and limited financial disclosures.
• Review any director conduct records or related party transactions given the single controlling shareholder and director.