Company Number: 13815610

Analysis Date: 2025-07-20 18:29 UTC

1. Risk Rating: HIGH
   The company demonstrates a significant negative net asset position and negative working capital, indicating poor solvency and liquidity. The large long-term creditor balance equal to investment loans raises concerns about the sustainability of operations without external support.

2. Key Concerns:

• Negative shareholders’ funds (deficit of £1,440 as of 2023 year-end) and net current liabilities indicate solvency risk.
• Extremely low cash balance (£100) against current liabilities, signaling liquidity stress and inability to meet short-term obligations without external funding.
• Large long-term creditor balance (£2.67 million), matching fixed asset investments, suggesting reliance on external loans or related party funding; risk of debt servicing and refinancing issues.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, demonstrating compliance with regulatory requirements.
• Company is active with a single controlling party, which may provide centralized decision-making and potential for capital support.
• The company has increased its investments (loans) from £1.24 million in 2022 to £2.67 million in 2023, possibly indicating growth or strategic asset acquisition.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors: Are these related party loans? What are the repayment terms and interest obligations?
• Review the company’s business model and cash flow projections to assess operational sustainability given the minimal cash holdings.
• Examine director’s plans or strategies to improve solvency and liquidity, including any capital injections, refinancing, or asset disposals.
• Confirm no director disqualifications or governance issues given the single director structure and significant related party funding.
• Evaluate the investment loans’ recoverability and any impairment risk that could further affect financial stability.