Company Number: 13276889

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency risk given persistent net liabilities and significant creditor balances exceeding current assets. Negative shareholders’ funds and large long-term liabilities underscore financial instability.

2. Key Concerns:

• Negative Net Assets: The company has reported net liabilities of £23,016 as of 31 March 2024, an improvement from £81,216 the prior year but still indicates insolvency on a balance sheet basis.
• High Long-Term Creditors vs. Assets: Creditors due after one year total £888,936, exceeding the value of investment property and net current assets combined, which suggests an over-leveraged position with insufficient asset backing.
• No Operating Employees & Minimal Cash: The company reported zero employees and only £11,889 cash at year-end, which raises concerns about operational capacity and liquidity for ongoing expenses or debt servicing.

3. Positive Indicators:

• Reduction in Net Liabilities: The company reduced net liabilities from £81,216 in 2023 to £23,016 in 2024, indicating some deleveraging or asset sales (notably investment property disposals).
• Current Assets Exceed Current Liabilities: Net current assets stand at £522,279, showing the company can meet short-term obligations, which provides some liquidity cushion.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory filing requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the £888,936 long-term creditors, including repayment schedules and covenants, to assess refinancing or default risk.
• Clarify the reasons behind the disposal of investment property and how it impacts future earnings or operational capacity.
• Review cash flow statements and any off-balance sheet liabilities to understand liquidity dynamics beyond static balance sheet figures.
• Assess the business model sustainability given zero employees and the director’s role, including reliance on consultants or third parties.
• Confirm any related party transactions, particularly loans from directors, and their impact on financial health.