Company Number: 12623827

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to persistent net liabilities and a highly leveraged balance sheet. The negative shareholders’ funds and net current liabilities indicate potential difficulty in meeting short-term obligations, raising substantial credit risk.

2. Key Concerns:

• Negative Net Assets: The company has reported net liabilities for multiple years, with shareholders’ funds standing at -£176,564 as of the latest accounts, indicating cumulative losses or erosion of equity.
• High Current Liabilities vs. Low Current Assets: Current liabilities (£1,206,355) greatly exceed current assets (£83,870), resulting in net current liabilities of over £1.1 million, a liquidity red flag suggesting challenges in covering short-term debts.
• Heavy Long-Term Debt: Creditors falling due after more than one year total nearly £5.9 million, implying significant long-term financial obligations that may strain future cash flow, especially given the lack of employees and operating income details.

3. Positive Indicators:

• Substantial Fixed Assets: The company holds fixed assets valued at approximately £6.83 million, which may provide collateral value or underpin future earnings potential.
• Timely Filings and Compliance: Accounts and confirmation statements are filed on time with no overdue returns, indicating regulatory compliance and good governance in administrative matters.
• Stable Management: The company has had the same two directors since incorporation, which may reflect consistent leadership.

4. Due Diligence Notes:

• Assess Asset Valuation: Investigate the nature and market value of the fixed assets to determine their liquidity and realisable value in case of financial distress.
• Understand Debt Structure: Review terms of the significant long-term liabilities to evaluate repayment schedules, interest obligations, and any covenants that could affect solvency.
• Evaluate Cash Flow and Income Sources: Since the company has no employees and low current assets, examine income streams, rent rolls, or other operational revenues to assess sustainability.
• Confirm Absence of Related Party Transactions or Guarantees: Check for any off-balance sheet liabilities or guarantees that might impact financial stability.