Company Number: 13972057

Analysis Date: 2025-07-19 13:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to persistent and large net current liabilities, combined with minimal current assets and low cash reserves relative to short-term liabilities. Although net assets are positive in the latest year, this is largely due to fixed assets financed through long-term liabilities rather than operational strength.

2. Key Concerns:

• Negative Working Capital: Net current assets are deeply negative (£-57,272 in 2024), indicating the company cannot meet short-term obligations with short-term assets.
• High Current Liabilities vs. Minimal Current Assets: Current liabilities (~£58,598) vastly exceed current assets (£1,326), raising serious liquidity concerns.
• Heavy Long-Term Debt Exposure: Bank loans totaling approximately £119,497, with repayment extending beyond five years, suggest high leverage without apparent earnings or cash flow to cover debt service.

3. Positive Indicators:

• Ownership of Tangible Fixed Asset: The company holds a freehold property valued at £178,944, which may provide collateral value and some asset stability.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Single Director and PSC Consistency: The director and person with significant control is the same individual, implying clear governance structure without conflicting control issues.

4. Due Diligence Notes:

• Cash Flow and Profitability Analysis: Investigate underlying cash flow statements or management accounts to assess operational cash generation or reliance on external funding.
• Debt Terms and Covenants: Review loan agreements for repayment schedules, interest rates, and covenant terms to evaluate refinancing or default risk.
• Business Model and Revenue Streams: As a relatively new company incorporated in 2022, confirm how the company generates revenue and whether the current financial structure is sustainable.
• Valuation and Marketability of Fixed Asset: Assess the fair market value and liquidity of the freehold property to understand realizable value in distress scenarios.