Company Number: 14416425

Analysis Date: 2025-07-29 18:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with current liabilities far exceeding current assets and minimal net assets. The high level of non-current liabilities nearly matches total assets, and shareholder funds are nominal, indicating elevated financial risk.

2. Key Concerns:

• Negative net current assets (-£70,297): Current liabilities of £73,160 vastly outweigh cash of only £2,863, indicating potential short-term liquidity stress.
• High long-term liabilities (£199,875) relative to asset base (£271,992): The company carries substantial debt, with only marginal net equity (£1,440), raising questions about long-term solvency.
• Dependence on director’s loan (£71,660): A significant portion of creditors is owed to the director interest-free and repayable on demand, suggesting informal financing that may not be sustainable or secure.

3. Positive Indicators:

• Investment property assets valued at £271,992: The company holds tangible investment property assets, which represent a potentially appreciating asset base.
• No overdue filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Single controlling shareholder/director: Simplifies governance and control, which may allow for swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the £199,875 long-term creditors to understand repayment obligations and covenants.
• Review cash flow forecasts and funding arrangements to assess the company’s ability to meet current liabilities and service debt.
• Verify the valuation method and market comparability for the investment property to confirm asset realizable value.
• Assess director’s loan terms and potential risks related to its recall or refinancing.
• Confirm the company’s operational model and revenue generation since turnover details are not disclosed; understand sustainability of rental income.