Company Number: 13225420

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: MEDIUM
   The company demonstrates some solvency and operational risks primarily due to its negative net current assets and high current liabilities relative to current assets. However, a significant increase in investment property value and positive net assets in the latest year suggest some recovery or asset appreciation mitigating immediate insolvency concerns.

2. Key Concerns:

• Liquidity Risk: The company has net current liabilities of £107,485 as of 30 June 2024, indicating a short-term liquidity mismatch that could impair meeting near-term obligations.
• High Current Liabilities: Current liabilities (£191,796) substantially exceed current assets (£11,204), raising concerns about cash flow pressures and the ability to fund ongoing operations without additional financing.
• Reliance on Investment Property Valuation: The marked increase in fixed assets (investment properties) from £191,835 to £325,000 is largely due to revaluation and additions. This asset appreciation is not liquid and may not be readily convertible to cash to meet liabilities if needed.

3. Positive Indicators:

• Improved Net Assets: The company’s net assets improved to £20,833 from a negative £2,225 the previous year, indicating an improvement in overall financial position.
• No Overdue Filings: The company is current on both accounts and confirmation statement filings, suggesting adequate regulatory compliance and governance.
• Asset Growth: Addition and revaluation of investment properties suggest active asset management and potential for future income or capital gains.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly whether there are any short-term debts requiring refinancing or repayment imminently.
• Assess cash flow projections and the company’s ability to generate operating cash or secure additional funding to cover net current liabilities.
• Verify the valuation methodology and market assumptions used for investment property revaluation to ascertain the reliability of fixed asset values.
• Review the company’s revenue streams and profitability trends, as turnover and profit data are not provided, to better understand operational sustainability.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in current accounts.