Company Number: 13346169

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, reflected in consistent negative net assets and net current liabilities. The large creditor balances relative to minimal cash holdings suggest difficulty in meeting short-term obligations.

2. Key Concerns:

• Persistent negative shareholders' funds (£-42,303 in 2023), indicating accumulated losses and potential insolvency risk.
• Severe liquidity constraints with cash reserves at only £153 in 2023 against current liabilities of £202,411. This raises concerns about the company’s ability to meet immediate debts.
• Growing long-term debt (bank loans increased from £47,250 in 2022 to £101,012 in 2023) without corresponding profitability or cash flow improvements, signaling potential over-leverage.

3. Positive Indicators:

• Tangible fixed assets have increased substantially (£149,944 in 2022 to £260,967 in 2023), indicating investment in real estate consistent with the stated SIC code. This could provide collateral value.
• The company remains compliant with filing requirements, with no overdue accounts or confirmation statements, which suggests sound governance in statutory reporting.
• Directors and significant control persons appear stable with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans and other creditors to assess refinancing risks and covenant compliance.
• Review cash flow forecasts and operational plans to determine how the company intends to address the negative working capital and restore solvency.
• Examine turnover, profitability, and revenue recognition policies, as turnover figures were not provided, to better understand operational sustainability.
• Confirm whether the tangible fixed assets include any encumbrances or restrictions impacting liquidity.
• Assess any potential contingent liabilities or off-balance sheet risks not disclosed in the filleted accounts.