Company Number: 14390023

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets and shareholders’ funds as of the latest financial year, with net current liabilities significantly exceeding current assets. This indicates solvency and liquidity concerns, compounded by a large director’s loan account balance as a creditor.

2. Key Concerns:

• Negative net assets of £6,445 as at 30 September 2024, down from positive net assets in previous years, indicating deteriorating financial health.
• Net current liabilities of £55,578, reflecting an inability to cover short-term debts with current assets, raising liquidity risk.
• Significant director’s loan account of £57,725 classified as a current liability, which may imply reliance on related party funding that could be called in or withdrawn.

3. Positive Indicators:

• The company is compliant with statutory filing deadlines, with no overdue accounts or confirmation statements, suggesting good regulatory compliance.
• The business appears to continue operations without formal insolvency measures (e.g., liquidation or administration).
• The presence of tangible fixed assets and investments, although reduced in value, provides some asset backing.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account and whether it is repayable on demand or has other covenants impacting liquidity.
• Clarify the underlying business model and cash flow generation capability given the SIC code (real estate letting and operating) and the decline in asset values.
• Review management plans or strategies to improve solvency, including capital injections or debt restructuring.
• Assess the impact of investment revaluation losses and potential impairment risk on future financial stability.
• Confirm no undisclosed contingent liabilities or off-balance-sheet risks.